The ministerial panel tasked with GST rate rationalisation will convene on September 25 in Goa to discuss potential adjustments to tax slabs and rates, reports PTI.
The six-member Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, last met on August 22 and submitted a status report to the GST Council on September 9. During that meeting, the panel instructed a fitment committee of tax officials from the Centre and states to analyze the implications of potential tax rate changes and gather more data.
The GoM also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, and Kerala Finance Minister K. N. Balagopal.
Currently, the Goods and Services Tax (GST) features a four-tier structure with rates set at 5%, 12%, 18%, and 28%. Essential items are either exempt from GST or taxed at the lowest rate, while luxury and demerit goods face the highest rate. There has been discussion about possibly merging the 12% and 18% slabs, but no formal proposals have been made.
The average GST rate, at around 12%, has dipped below the revenue-neutral rate of 15.3%, prompting the need for discussions on rationalisation. However, some states, including West Bengal and Karnataka, are against any immediate changes to the slabs.