Despite the Centre’s push to simplify the Goods and Services Tax (GST) structure by eliminating the 12% slab, the Group of Ministers (GoM) on GST rate rationalisation remains divided on the proposal.
The Group of Ministers (GoM) on Goods and Services Tax (GST) rate rationalisation is likely to push for phasing out the 12 percent tax slab by gradually shifting items to either the 5 percent or 18 percent slabs to simplify the tax framework and ease compliance for businesses, people familiar with the development said.
The Group of Ministers (GoM) on goods and services tax (GST) rate rationalisation, which convened in Goa on Wednesday, reviewed the GST rates for over 100 items, including textiles, handloom goods, agricultural products, fertilisers, and educational materials. However, no consensus was reached on any of the items, with further discussions scheduled for next month in Delhi.
The upcoming Goods and Services Tax (GST) Council meeting on September 9 will discuss rationalisation of rates on several items but a decision regarding any rate change will be taken in subsequent meetings,
The group of ministers (GoM) on GST rate rationalisation may have deferred a plant to rework slabs but it is undertaking a thorough review of rates across several categories, including items in the 12% and 18% brackets and will take a call on several products and services towards Sept-end.
The Group of Ministers (GoM) on GST rate rationalisation met on Thursday and largely agreed to maintain the current four-tier tax slab system. The panel has asked tax officers to analyse the impact of adjusting rates on certain items and present their findings to the GST Council.
