GG News Bureau
New Delhi, 23rd Sept. The meeting of the Ministerial Group (GoM) on Goods and Services Tax (GST) rates is set to take place on September 25 in Goa. Discussions will focus on potential changes to tax slabs and rates, according to an official statement to PTI-Language.
The six-member GoM, chaired by Bihar’s Deputy Chief Minister Samrat Chaudhary, last convened on August 22, presenting a status report to the GST Council on September 9.
During the August meeting, the GoM tasked the fitment committee—comprising central and state tax officials—with analyzing the impact of tax rate changes on certain goods and gathering further data. Currently, GST follows a four-tier tax structure, with rates set at 5%, 12%, 18%, and 28%.
Essential goods either enjoy exemptions or are placed in lower tax slabs, while the highest rate applies to luxury and demerit goods, which also incur an additional cess. Discussions are ongoing regarding the possible merger of the 12% and 18% tax slabs, though no formal proposals have been submitted yet. The average GST rate has reportedly dropped to around 15.3%, below the revenue-neutral rate, highlighting the need for discussions on rate rationalization.
States like West Bengal and Karnataka are currently opposed to changes in the GST slabs.
After the August meeting, West Bengal’s Finance Minister Chandrima Bhattacharya stated, “I have said that there should be no changes in the GST slabs.”
Similarly, Karnataka’s Revenue Minister Krishna Byre Gowda emphasized the need for the GoM to assess whether there is a necessity to alter the relatively stable GST framework, asking, “What will you gain by disrupting it? We said we would discuss this in the next meeting.”
The six-member GoM also includes Uttar Pradesh’s Finance Minister Suresh Kumar Khanna, Rajasthan’s Health Services Minister Gajendra Singh, and Kerala’s Finance Minister K. N. Balagopal.
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