GoM on GST rate rationalisation to meet on September 25 to discuss rate slabs and adjustments

New Delhi: The ministerial group on GST rate rationalisation will meet on September 25 and is likely to discuss adjustment of tax slabs and rates.

“The GoM meeting on fare rationalisation is scheduled for September 25 in Goa,” an official said. PTI.

The six-member group of ministers (GoM) under Bihar Deputy Chief Minister Samrat Chaudhary last met on August 22 and submitted a progress report to the GST Council on September 9.

In the August meeting, the panel had directed the adjustment committee comprising tax officers from the Centre and states to analyse the implications of the change in tax rate on certain items and collect more data.

Currently, the Goods and Services Tax (GST) is a four-tiered tax structure with slabs of 5, 12, 18 and 28 percent.

Under GST, essential items are either exempted or taxed at the lowest level, while luxury items and demerit items are taxed at the highest level. Luxury items and vice items are taxed at the highest level, either at the highest level or at the highest level or at the highest level or at the level of 28%.

There has been talk of merging the 12 and 18 percent tax brackets, but nothing has been proposed so far.

The average GST rate has fallen to around 12%, below the revenue neutral rate of 15.3%. This has led to the need to initiate discussions on rationalising the GST rate.

States like West Bengal and Karnataka are not in favour of changing GST slabs so far.

West Bengal Finance Minister Chandrima Bhattacharya had said after the GoM meeting in August: “I said there should be no change in the GST slab.”

Karnataka Revenue Minister Krishna Byre Gowda said the Karnataka government needed to analyse whether there was a need to “disrupt” the GST system, which has now largely stabilised.

“What do you want to achieve by disrupting this? We have said we will discuss it in the next meeting (reduction of slabs),” Byre Gowda had said.

The six-member Mali government also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh and Kerala Finance Minister KN Balagopal. PTI JD TRB