New Delhi:About 70-75 per cent of GST revenues collected in the 2023-24 fiscal year came from the 18 per cent slab, while just 5-6 per cent came from the 12 per cent bracket, Parliament was informed on Monday. Only 6-8 per cent of the FY24 goods and services tax (GST) revenues were from the 5 per cent slab, while the highest tax slab of 28 per cent contributed 13-15 per cent to the revenues in the last fiscal year.
Minister of State for Finance Pankaj Chaudhary shared the details of the proportion of GST collected (excluding compensation cess and other payments) under various tax slabs in 2023-24 in the Lok Sabha. The GST Council has constituted a six-member Group of Ministers (GoM), under Bihar Deputy Chief Minister Samrat Chaudhary, to suggest the rationalisation of GST rates as well as the merger of slabs to increase GST revenues.
Currently, GST is a four-tier tax structure with slabs at 5, 12, 18, and 28 per cent. Under GST, essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. Luxury and sin goods attract cess on top of the highest 28 per cent slab. The average GST rate has fallen below the revenue-neutral rate of 15.3 per cent, prompting the need to start discussions on GST rate rationalisation.