Revenue crunch prompts govt to consider GST rate hike on low-tax products

Goods and services falling under zero and 5% slabs may be hit

The  finance ministry, faced with a steep revenue collection target for 2019-20, is internally exploring whether the goods and services tax (GST) can be imposed on certain items and services that are exempt, and if rates can be increased on those in the lowest slab.

Business Standard has learnt that proposals such as raising rates on goods and services attracting zero tax to 5 per cent, and to 12 per cent from 5 per cent for some line items, are being considered in a bid to counter the shortfall in GST collection. 

GST proceeds fell to a 19-month low of