GST: Need to prune GST services sop; revenue secretary Tarun Bajaj | India Business News – Times of India
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NEW DELHI: A lot of work still needs to be done to prune GST-exempted items, especially in the services sector, revenue secretary Tarun Bajaj said on Tuesday. Addressing a CII interactive session, Bajaj said the effort is to remove the “rough edges” in GST over two-three years.
On rationalisation of GST rates, the secretary said a group of ministers is looking into it. “We will have to wait for some time,” he said. Exemptions still remain, a large number on the services side, Bajaj said, adding “work needs to be done to prune it”.
On representations that 5% GST on non-ICU hospital rooms above Rs 5,000 is against affordable healthcare, Bajaj said the percentage of rooms in hospitals which charge more than Rs 5,000 is “minuscule”.
“If I can spend Rs 5,000 on a room, I can pay Rs 250 for GST. I don’t see any reason for such a messaging that 5% GST is hitting affordable healthcare,” Bajaj said.
The secretary said the 28% slab in GST contributes 16% to the gross GST revenue, while the major chunk of 65% comes from the 18% slab.
The slabs of 5% and 12% contribute 10% and 8% of the total gross GST revenue.
On rationalisation of GST rates, the secretary said a group of ministers is looking into it. “We will have to wait for some time,” he said. Exemptions still remain, a large number on the services side, Bajaj said, adding “work needs to be done to prune it”.
On representations that 5% GST on non-ICU hospital rooms above Rs 5,000 is against affordable healthcare, Bajaj said the percentage of rooms in hospitals which charge more than Rs 5,000 is “minuscule”.
“If I can spend Rs 5,000 on a room, I can pay Rs 250 for GST. I don’t see any reason for such a messaging that 5% GST is hitting affordable healthcare,” Bajaj said.
The secretary said the 28% slab in GST contributes 16% to the gross GST revenue, while the major chunk of 65% comes from the 18% slab.
The slabs of 5% and 12% contribute 10% and 8% of the total gross GST revenue.
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