GST GoM on Rationalisation to meet on September 25.
The six-member GoM on GST Rate Rationalisation, led by Bihar Deputy Chief Minister Samrat Chaudhary, will likely focus on the possibility of merging the 12 per cent and 18 per cent GST slabs.
The Group of Ministers on GST rate rationalisation, under Bihar Deputy Chief Minister Samrat Chaudhary, will meet in Goa on September 25 to discuss potential revisions to tax slabs and rates.
The six-member GoM, led by Bihar Deputy Chief Minister Samrat Chaudhary, will likely focus on the possibility of merging the 12 per cent and 18 per cent GST slabs. While some states remain cautious about such changes, discussions are aimed at optimising the tax structure.
The six-member Group of Minister (GoM) had last met on August 22 and had submitted a status report to the GST Council on September 9. During the August meeting, the panel had tasked the fitment committee comprising tax officers from the Centre and states to analyse the implication of tax rate change on some items and gather more data.
Currently, the GST framework consists of four slabs — 5%, 12%, 18%, and 28% — with essential goods either exempted or taxed at the lower rates, and luxury or “sin” goods subject to the highest slab along with an additional cess. However, some states like West Bengal and Karnataka have expressed reservations about adjusting the goods and services tax (GST) rates.
Around 12 per cent, the average GST rate has fallen below the revenue neutral rate of 15.3 per cent. This has prompted the need to start discussions on GST rate rationalisation.
West Bengal Finance Minister Chandrima Bhattacharya had said after the GoM meet in August, “I have said there should be no changes in the GST slab”.
Karnataka Revenue Minister Krishna Byre Gowda had said the GoM has to analyse whether there is need to “disturb” the GST system, which has now broadly stabilised.
“What do you achieve by disturbing it. We said in next meeting we will discuss it (reducing slabs),” Byre Gowda had said.
The six-member GoM also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, and Kerala Finance Minister K N Balagopal.
Meanwhile, in the 54th GST Council on September 9, 2024, the Council also formed a new GoM on GST rate reduction on medical health insurance set up, which will submit its report by October-end. FM Nirmala Sitharaman said the GST Council meeting to be held in November will take a call on reduction in rate on health insurance.
(With PTI Inputs)
