The Government Of India Is Considering Adjusting The Tax Structure Of Goods And Services Tax (GST).

The India commodity and service tax (GST) committee will meet in December 18th (2019) to discuss whether it is necessary to adjust the tax structure of goods and services tax (GST) to increase government revenue. If the Commission decides to adjust, the new system will start in April 1st (April 1st), that is, from the next financial year. India consumers need to prepare for the higher GST tax rate.

At present, the GST tax rate in India is 28% (accounting for 22% of total GST tax), 18% (60%), 12% (13%), and 5%, 3% and 1% for the needs of the people's livelihood (three 5%). The central government of India is considering raising the tax rate of 5% to 6% and 8%, increasing the tax rate of 10 billion to 30 billion rupees (about NT $5 billion to 15 billion yuan) a month, and abolishing 12% tax. But local states hold different views on this.

Thomas Isaac, chief financial officer of Kerala state in southern India, said that since the 5% tax rate is mostly for people's livelihood such as clothing and food, it is the livelihood of the poor. If the government decides to raise the tax, it will cause a strong rebound. The canal also said that the K state has recommended to the government that 18% of the tax be raised to 22% (130 billion rupee tax per month) or 25%, because the tax product is a large sum of tax revenue and does not involve people's livelihood necessities, so it is more suitable for raising the tax rate and substantially increasing government revenue. Sushil Modi, deputy governor of Bihar state in northern India, also said that raising taxes by 5% would not help much in raising taxes, but the government should raise taxes by 18%.

Punjab, another northern state of India, recommended to the government that the 5% and 12% taxes should be combined into 10%, and the 18% and 28% taxes should be consolidated into 20% or 22%, which would simplify the GST tax system to 2 tax and increase government revenue. PwC Pratik Jain, a partner of India accounting firm, has similar views. The canal believes that if the government of India decides to lower the 5% tax to 8%, it should combine 12% and 18% tax into 15% or 16% at the same time, so that the GST tax system can be simplified to 3 kinds of taxes, namely, taxation on general products, people's livelihood necessities and luxury goods.