The Group of Ministers (GoM) on GST rate rationalisation will meet on June 17 to discuss possible tax rate adjusting, media source said. They said the Group of Ministers (GoM) is likely to consider possible changes to the tax slab, but that the panel's final report will take some time.
The GST Council, which includes finance ministers from the Centre and states, is expected to convene by the end of the month to examine the GoM interim report on rate rationalisation, among other things. With inflation at an all-time high, sources in the finance ministry previously stated that there is now little room for GST rate rationalisation on goods and services.
Last year, the council appointed a seven-member panel of state ministers, led by Karnataka Chief Minister Basavaraj Bommai, to recommend measures to increase revenue by lowering tax rates. The last time the GoM met was in November 2021.
The GoM has been mandated with reviewing items with an inverted duty structure in order to reduce rebate payouts and to review the Goods and Services Tax (GST) exempt list in order to broaden the tax base and prevent the ITC chain from being broken.
A four-rate structure under the GST exempts or taxes basic commodities at a low rate of 5%, while luxury and demerit goods are taxed at a peak rate of 28%. The other two tax brackets are 12 and 18 percent. Furthermore, a 28 percent cess on luxury, demerit, and sin goods is placed on the highest slab.
Govt tightens norm for crude edible oils import at nil duty
"Impact of structural reforms will help boost India's growth": CEA
