GST Rates: Do you know that the maximum GST revenue to the central and state governments comes from goods and services falling in the 18 percent slab. The government said that in the financial year 2023-24, 70 to 75 percent of the total GST collection came from the 18 percent GST slab, while the lowest revenue came from the 12 percent GST slab and 5 to 6 percent of the total GST revenue collection came from this slab. 

Question to the government in parliament

During the Question Hour in Lok Sabha, the Finance Ministry was asked for details of the GST revenue earned from 5%, 12%, 18% and 28% slab rates since the implementation of GST in 2017. Lok Sabha MP K Sudhakaran also sought details of 10 product categories which have earned the highest GST revenue. 

The government's treasury is filled with the 18 percent slab 

Giving a written reply to this question, Minister of State for Finance Pankaj Chaudhary said that it is very difficult to calculate the amount of GST collected by applying different tax rates in the data collected from the returns of taxpayers. Giving information about the ratio of GST collected under different GST slabs in the financial year 2023-24, excluding compensation cess and other payments, he said that 70 to 75 percent of the total GST collection has come from the 18 percent GST slab. After this, it is the turn of the 28 percent slab, from which 13 to 15 percent GST collection has been done during the financial year. The 5 percent tax slab has a 6-8 percent share in the total GST revenue. Whereas 5.6 percent revenue has been collected through the 12 percent slab. The Minister of State for Finance said that the data of GST collection done according to the product category is not available. 

Life and health insurance policies are also in the 18% slab 

On the question of reduction in GST rate on life and health insurance policies, Finance Minister Nirmala Sitharaman said that if the GST Council recommends reduction in GST rate on life and health insurance policies, then the cost of premium payment on policyholders can be reduced. Currently, 18 per cent GST is levied on premium payment made on life and health insurance policies. The GST Council meeting to be held on 21 December 2024 is expected to discuss the reduction in GST rates. In the financial year 2023-24, the central and state governments collected GST of Rs 16,398 crore from life and health insurance policies.