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Rationalisation of tax slabs under the newly-introduced goods and services tax (GST) would depend on the rise in revenue collection in the days to come, MoS for finance and corporate affairs Arjun Ram Meghwal said on Saturday.
Presently, there are five tax slabs including exempted category at zero, five, 12, 18 and 28 per cent. Meghwal said, while in pre-GST time only 8 million dealers were registered, another 1.3 million had been added after its introduction, of which 56,000 were from West Bengal only, the highest among the country. He said that GST Network (GSTN), would be further improved. "Registered dealers may be facing some teething problems. But the system is perfect," he said.
The dealers would also have to maintain computerised records with regards to input tax credit and reverse charge mechanism, Meghwal said at a seminar here. He said, all these were required to eliminate the shadow economy. Regarding tax incentives in areas like the Northeast, HP and Uttarakhand after introduction of GST, Meghwal said it would be decided by the GST Council.
Meghwal said that the government had introduced GST after consulting all the states and not on the basis of the majority.
Had there been an opposition from a single state, the government would not have introduced it.