Is it true that government will hike GST rates to compensate for lower revenues this year?

In a move that could be largely inflationary, the GST Council is expected to enhance the lowest base rate of GST from 5% to 8%. This is likely to be announced in the next GST Council meeting. Ironically, they are likely to raise taxes on the lowest slab of 6% and raise that level to 8% of global traffic. The GST Council in its next meeting might raise the lowest tax slab to 8% from 5%.

Currently, the GST is 4-tier structure with GST rates varying from 5%, 12%, 18% and 28%, respectively. Normally, essential items and items of mass consumption are either at zero tariffs or at the base 5%.Now this 5% is likely to be rationalized to 8%. Of course, in the case of luxury items, the GST goes all the way to 28% and the Council normally an additionally cess on these amounts. The increase in entry level tax from 5% to 8% will yield the government ad additional Rs.150,000 crore to the government.