GST Council meets tomorrow: What to expect
Big changes could be coming to how we pay taxes: the GST Council is meeting in New Delhi on September 3-4, led by Finance Minister Nirmala Sitharaman.
They're looking to lock in a new two-slab GST system (0-5% and 12-18%) and might slap a hefty 40% tax on "sin goods."
The focus is on ensuring that the benefits of the GST rate rejig are passed on to consumers.
States raise red flags over potential revenue losses
Not everyone's thrilled—states like Karnataka, Tamil Nadu, Kerala, West Bengal, and Punjab worry these reforms could mean losing out on revenue.
Karnataka's Chief Minister even flagged a possible ₹15,000 crore shortfall.
The Center is likely to point out that GST collections have actually jumped—from an average of ₹92,500 crore per month in FY18 to over ₹2 trillion this year.
In August alone, collections rose 6.5% year-on-year to ₹1.86 lakh crore—offering some hope that the new plan could work for everyone.