The government is working towards aligning similar goods, classified under different Goods and Services Tax (GST) rates, into one particular tax slab, in a bid to avoid multiplicity of rates.
For instance, dried fish attracts a 5 percent tax, while 0 percent tax is levied on whole fish (not fillet or frozen). Similarly, 28 percent tax is levied on chocolate syrup, while 18 percent of sugar syrup. The government is reportedly working on removing this multiplicity of rates for similar products.
a committee of officers is currently doing the math as to what will be the revenue implications in case of shifting products into a lower tax slab.
Revenue Secretary Adhia, however, said the overhauling would require some calculations by the fitment committee, which will decide which items need a rationalisation of rate under the GST. The GST Council has already cleared an approach paper for items to be considered for rationalisation but it is not binding and the council can always make deviation from the approach paper.
GST, billed as the country's biggest indirect tax overhaul, has combined a dozen of state and centre duties into one single levy. All goods and services have been fitted into four broad slab structure –5, 12, 18 and 28 percent—along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks.