New Delhi
The Ministerial Panel on GST rate rationalisation is set to meet on September 25 in Goa to deliberate on potential tweaks to tax slabs and rates.
An official confirmed this to PTI, highlighting that the Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, last convened on August 22. They had submitted a status report to the GST Council on September 9.
During the August meeting, the panel tasked the fitment committee to analyse the implications of tax rate changes on certain items and gather more data. The current GST structure includes tax slabs of 5, 12, 18, and 28 percent. Essential items are either exempt or taxed at the lowest rate, while luxury items attract the highest rate plus an additional cess.
Despite discussions on merging the 12 and 18 percent slabs, no proposals have been made. The average GST rate has fallen below the revenue-neutral rate of 15.3 percent, urging the need for rate rationalisation talks. Some states, including West Bengal and Karnataka, oppose slab changes at this time.
Chandrima Bhattacharya from West Bengal and Krishna Byre Gowda from Karnataka have both voiced concerns about destabilizing the current GST structure. The GoM, which also includes representatives from Uttar Pradesh, Rajasthan, and Kerala, will continue discussions on this matter in the next meeting.
