The GST fitment committee has also said that two different rates of GST, 12 and 18 per cent, should be merged into one.
The price of gold and silver jewellery is likely to increase as the Goods and Service Tax (GST) Fitment Committee has proposed to increase the rates of GST. The committee has said that the goods on which the rate of GST is currently 5 per cent should be increased to 7 per cent and the goods on which the rate is 18 per cent should be increased to 20 per cent.
In its proposal, the fitment committee has also said that two different rates of GST, 12 and 18 per cent, should be merged into one. That is, by merging these two GST rates, a new rate of 17 per cent should be made. However, this proposal is yet to be considered.
Apart from this, the GST Fitment Committee has also talked about increasing the compensation rate in its proposal. At present, this rate is 1%, which has been proposed to be increased to 1.5%. The most important thing is that in this proposal, emphasis has been laid on increasing the GST on gold and silver. GST Fitment Committee The GST Fitment Committee has proposed to increase the GST on gold and silver from 3 per cent to 5 per cent.
The rate slab of GST will be changed only after the decision of the Group of Ministers on the proposals of the GST Fitment Committee. The GST Council will also brainstorm in this regard. Significantly, there has been speculation for several months regarding the change in the rates of GST, which can now be decided.
Notably, a meeting of the Group of Ministers is to be held on November 27. In this meeting, a major decision can be taken on the change in the GST slab. The decision of the Group of Ministers in this meeting may be presented in a possible meeting of the GST Council in December.
The CBIC issued a notification stating that from January 2022, the GST rates on fabrics will be 5 per cent to 12 per cent. Along with this, the rates of GST on clothes made of any value will also be 12 per cent. Earlier, 5 per cent GST was levied on clothes worth more than Rs 1000.
The GST rate on other textiles (woven fabrics, synthetic yarns, pile fabrics, blankets, tents, other textiles like table cloths) has also been increased from 5 per cent to 12 per cent. Along with this, the GST rate applicable on footwear of any value has also been reduced to 12 per cent. It is worth noting that earlier GST was levied at the rate of 5 per cent on footwear valued above Rs 1000.
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