India News | GoM Fails to Reach Consensus on GST Rate Rationalisation

New Delhi, Jun 17 (PTI) A panel of state ministers on GST rate rationalisation on Friday failed to reach a consensus as some members opposed changes to tax slabs and rates, sources said.

The Group of Ministers will, however, present a status report to the GST Council on the consensus which was arrived at the previous meeting of the GoM on November 20, 2021, they added.

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The GoM will seek an extension to submit its final report, they said, adding issues of tax rates will also be raised in the upcoming Council meeting later this month.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, is scheduled to meet on June 28 and 29 in Srinagar.

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The Council had last year set up a seven-member panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to suggest ways to augment revenue by rationalising tax rates.

The GoM has been mandated to review items under inverted duty structure to help minimise refund payout, and review the GST exempt list with an objective to expand the tax base and eliminate breaking of input tax credit (ITC) chain.

Under GST, a four-tier structure exempts or imposes a low rate of tax 5 per cent on essential items and levies the top rate of 28 per cent on cars and demerit goods. The other slabs of tax are 12 and 18 per cent.

Besides, a cess is imposed on the highest slab of 28 per cent on luxury, demerit and sin goods.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)