Potential Elimination of 12% GST Slab: Fitment Committee’s New Rate Rationalization Exercise

• The GST Council’s fitment committee is considering eliminating the 12 per cent slab
• The committee may move to a 3-slab system instead of the current five slabs
• The current GST slabs are 5%, 12%, 18%, and 28%
• Essential items are taxed at 5%, while sin and luxury goods are taxed at 28%
• The 28% slab contributes 16% of total revenue, while the 18% slab contributes 65% of revenue

Source: a2ztaxcorp.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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