FM Sitharaman Set To Meet GoM To Resolve Deadlock On 12% GST Slab
Despite the Centre’s push to simplify the Goods and Services Tax (GST) structure by eliminating the 12% slab, the Group of Ministers (GoM) on GST rate rationalisation remains divided on the proposal.
Union Finance Minister Nirmala Sitharaman is expected to engage directly with the GoM in April, after the Budget session, to provide guidance and try to resolve the deadlock, according to a report by Moneycontrol.
The six-member GoM includes key ministers from Bihar, Uttar Pradesh, Rajasthan, Karnataka, West Bengal, and Kerala. Sitharaman’s involvement is seen as critical in resolving the differences between states, many of which have opposed the move due to concerns about uneven tax burdens and potential revenue losses.
Sources informed Moneycontrol that there is no consensus within the GoM regarding the removal of the 12% GST slab. While the Centre is keen to eliminate the slab, some state ministers are opposed to the proposal.
Sitharaman’s direct intervention is anticipated to play a crucial role in building consensus. Sources further stated that after the Parliament session, the Finance Minister is expected to meet with the GoM on rate rationalisation, assess their perspectives, and provide her guidance.
