In the 47th meeting of the GST Council held at Chandigarh, it was decided that packed foods like flour, milk, curd and paneer will be brought under the 5% tax slab. The meeting was held last month, but the revised rates came into effect on 18 July 2022 after which the products of daily use have become very costly.
True Scoop interviewed Indian Economist, Sardara Singh Johal, on the revised rates of GST. According to him, the model of GST introduced by the government from the very start is wrong. He pressed upon the fact that tax should be put up on goods as well as services at the point of their production only. After the production is carried out, no tax should be levied on anything.
The government should only impose a tax on goods if they are improved further after their production. If not, then levying tax on it after the production is unreasonable, he added further.
He quoted, “If this strategy of levying tax only once is implied then the income will also increase and the common person will also not face the burden of paying multiple taxes.”
In the end, he suggested that there need to be some amendments in the policy of Goods and Services Tax introduced by the government to make the whole system fairer.