The GST Council will consider any proposal to change tax rates only once a year and henceforth all changes in GST rates will be implemented from April 1 i.e. the beginning of the financial year. Finance Ministry sources gave this information on Tuesday. The GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising state finance ministers, had decided to rationalize tax rates and slabs in September last year. The four-slab GST (five, 12, 18 and 28 per cent) was replaced by a two-rate system of five and 18 per cent. Sources in the finance ministry said that the change in tax rates has not been included in the agenda of the 57th GST Council meeting to be held on October 8.

There will be a change once a year

Sources said that in future rate changes will be proposed only once a year and will be implemented from April 1, i.e. from the new financial year. Limited issues related to rationalization of rates and removal of ambiguity will be taken up in the next meeting. Under other proposals, the Council may approve that supplies made through e-commerce platforms will be subject to a single GST rate of five percent without input tax credit.

Current rates are applicable for one year

A source said certainty is more important to most traders than any concession. He said that the fixed tax rate regime helps in pricing and planning capital expenditure for the entire duration of the contract. Sources said the restructured GST last year has been in effect for almost a year and has benefited consumers, industry, tax revenue and the economy. The rationalization of GST rates last year has increased consumption and also increased GST revenue. Monthly GST revenue has seen double digit growth since June this year.