GST GoM proposes major rate adjustments, aims to boost revenue by Rs 22,000 crore
In a significant move, the Goods and Services Tax (GST) Group of Ministers (GoM) has agreed upon a slew of rate revisions that are expected to bring in an additional Rs 22,000 crore annually. According to sources, these proposals are set to be presented to the GST Council during its upcoming meeting in November. The proposed changes aim to both raise taxes on luxury and sin goods and provide relief on essential items.
The GoM has suggested raising GST rates on several luxury items, including high-end wristwatches and shoes. Meanwhile, to make essential products more affordable, the group has proposed reducing GST on items such as bicycles, exercise books, and large packs of packaged drinking water.
A source close to the discussions highlighted the importance of these adjustments in addressing both revenue needs and consumer affordability. "The GST GoM on rate rationalisation has put forward changes on several items, which are expected to bring in additional revenue of Rs 22,000 crore annually," said the source.
Increase in GST for Luxury Goods The GoM has proposed to increase the GST rate on wristwatches priced above Rs 25,000 from 18 percent to 28 percent. Similarly, shoes costing over Rs 15,000 will also see a tax hike, with the rate going from 18 percent to 28 percent.
