GST: Group of Ministers to finalise report on rate rationalisation on November 27

 









The Group of Ministers (GoM) looking into GST rate rationalisation will meet on November 27 (Saturday) to finalise the report on rate changes. The panel, comprising state finance ministers, will review the current rate structure of various items, reported ET Now.

The GST Fitment Committee has made several recommendations regarding slab and rate changes and taking items out of the exemption list. The recommendations will be discussed in the meeting. Sources told the channel that the GoM will meet under the chairmanship of Karnataka Chief Minister Basavaraj Bommai.

The panel also includes West Bengal Finance Minister Amit Mitra, Kerala Finance Minister K N Balagopal, and Bihar Deputy Chief Minister Tarkishore Prasad. The report of the ministerial panel is likely to be finalised in this meeting and would be presented before the GST Council when it meets next month

In the meeting, the GoM will review items under an inverted duty structure to help minimise refund payout. It will also review the supply of goods and services exempt under Goods and Services Tax with an objective to expand the tax base and eliminate breaking of input tax credit (ITC) chain.

As per the sources, some items from the 0% slab may be put on the higher slab. GST on gold, silver, and other precious metals will also be reviewed. GoM is also likely to discuss the merger of 12% and 18% GST slab, while a new slab of 15% may be adopted. GST on branded ghee is also to be reviewed. \

For the unversed, currently, GST has four tax slabs - 5, 12, 18 and 28 per cent. Essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab. On the top of the highest slab, a cess is levied on luxury and demerit goods.

There have been demands for quite some time now for merging the 12 and 18 per cent slab and also taking out certain items from the exempt category to balance the impact of slab rationalisation on revenue. With regard to inverted duty structure, the GST Council has already corrected the rate anomaly in the case of mobile handset, footwear and textiles.

The ministerial panel would also look at representations of inverted duty structure and recommend suitable rates to eliminate any such cases where final goods attract a lower GST than the tax levied on its inputs. GoM will submit is report by the end of November and GST Council meet is likely to happen next month.


Source:https://www.timesnownews.com/business-economy/economy/gst/article/gst-group-of-ministers-to-finalise-report-on-rate-rationalisation-on-november/834692


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