GST Rate Rejig: GoM To Review 100 Items for Rate Adjustments — Exclusive
In its two-day meeting in Goa, the panel will discuss tweaking of GST rates and slabs.
A panel of state ministers set up by the all-powerful Goods and Services Tax Council, which suggests changes to the tax structure, is expected to review the implication of rate rationalisation on at least 100 items at its two-day meeting in Goa.
The six-member panel, headed by Bihar Deputy Chief Minister Samrat Chaudhary, is scheduled to meet on Sept. 24 and Sept. 25, to discuss change in GST slabs and rates and its impact particularly on essential items, a person with direct knowledge of the matter told NDTV Profit.
The final call, however, will be taken after more deliberations, which could be done in subsequent meetings by the panel, the person said on the condition of anonymity. The panel had met on Aug. 22 and had submitted the status report to the Council on Sept. 9.
The panel also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, and Kerala Finance Minister K N Balagopal.
In the upcoming meeting, the Group of Ministers are likely to consider tinkering current rates and slabs, merging existing slabs and correcting the inverted duty structure, the person cited above said. The state panel might examine rate changes in specific sectors including textile, fertiliser, handloom which requires detailed review, the person said.
During the August meeting, the ministerial panel had broadly converged on retaining the four-slab tax structure. The panel, though, asked the Council-nominated Fitment Panel to examine the revenue implication on some items and seek relevant data.
The Fitment panel, which comprises of revenue officials of Centre and States, is learnt to have submitted three options to the GoM, which could be taken up by the panel in its upcoming meeting.
Of the three rate structures on the table, one suggests tax slabs of 7%, 14% and 21%. The other proposal is of 8%, 16% and 24%. While the third option is 9%, 18%, and 27%.
All the options were proposed to state panel, keeping no adverse impact on the prices of mass consumption items, the person said.
Currently, goods and services tax is a four-tier tax structure with slabs at 5%, 12%, 18%, and 28%.
Under the GST, essential goods are either fully exempt, or subject to the lowest tax rate, while luxury and sin goods attracts highest slab of 28%. On luxury and sin goods, cess is imposed over and above the highest tax rate.
Notably, another GoM on real estate is also expected to meet in Goa during the period. The state panel, led by Goa chief minister Pramod Sawant, will consider potential exemption of GST on industrial land/plots on 30+ year leases and whether there should be an exemption of GST on cooperative societies.
