GoM on GST rate rationalisation to discuss adjustments to slabs and rates on September 25
GST | (Photo: Shutterstock)
The ministerial panel on rationalisation of GST rates will meet on September 25 and is expected to discuss the adjustment of tax slabs and rates.
“The GoM meeting on tariff rationalisation is scheduled for September 25 in Goa,” an official told PTI.
The six-member Group of Ministers (GoM) headed by Bihar Deputy Chief Minister Samrat Chaudhary last met on August 22 and submitted a status report to the GST Council on September 9.
During its August meeting, the panel directed the Adjustment Committee, comprising tax officials from the Centre and states, to analyse the impact of the change in tax rate on certain items and collect more data.
Currently, the Goods and Services Tax (GST) consists of four levels, namely 5, 12, 18 and 28 percent.
Under GST, essential items are exempted or taxed at the lowest bracket, while luxury and demerit items attract the highest bracket. Luxury and sin goods attract cess above the highest bracket of 28 percent.
There has been talk of merging the 12 and 18 percent tax brackets, but nothing has been proposed so far.
Around 12 percent, the average GST rate has fallen below the revenue neutral rate of 15.3 percent. This has led to the need to initiate discussions on rationalization of the GST rate.
States like West Bengal and Karnataka have so far been reluctant to change GST rates.
West Bengal Finance Minister Chandrima Bhattacharya said after the GoM meeting in August, “I have said that there should be no change in the GST slab.”
Karnataka Finance Minister Krishna Byre Gowda said the Minnesota government should analyse whether there is a need to “disrupt” the GST system, which has largely stabilised by now.
“What do you achieve by disrupting it? We said we would discuss it (reducing plates) in the next meeting,” Byre Gowda had said.
The GoM comprises six members, including Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh and Kerala Finance Minister KN Balagopal.
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First publication: Sep 22, 2024 | 4:33 PM IST