If GST Council decides to correct certain duty structures on Mobile phones, textiles and few other goods. Due to imbalances in tax structures, the government has faced a loss of close to Rs 25,000 crore per annum as the government has to refund the tax already paid. The bulk of the refund demand due to inverted duty structure comes from the lower tax slabs of 5% or 12%. At present mobile phones attract a 12% duty under the GST but its components attract 18%. Similarly, finished textiles have a 5% duty but the raw materials are taxed at 12%.
