GST rate hike will go into effect on July 18th

30 Jun 2022 , 10:09 AM

With the Goods and Services Tax (GST) Council’s approval of a rate hike to correct inverted duty structures and the withdrawal of several exemptions, a number of goods and services will cost more starting on July 18. Any rise in GST rates, according to finance minister Nirmala Sitharaman, is meant to make up for “inefficiencies” in the value chain.

She asserted that any rise in GST rates will also compensate for the additional tax burden paid by some other activities in that value chain and that all states are mindful of the possible impact of rate rationalization on inflation.

“Technology may eliminate anomalies and inefficiencies, which might affect how much money is collected. However, the RBI study’s revenue-neutral rate has been exceeded, which is bad for the system. That has to be corrected, “At the conclusion of the 47th council meeting, Sitharaman spoke to the media.

The minister said that no state was opposed to rate changes. The Fitment Committee’s recommendations to the GST Council were fully taken into account, she added, and most of them were approved.