Ministerial panel on GST rate rationalisation to meet today, to make a ppt to Council on Sep 9
Ahead of the 54th meeting of the Goods and Services Tax (GST) on September 9, the Group of Ministers (GoM) on rate rationalisation is meeting today. The ministerial panel is likely to discuss the deliberations held so far regarding rate rejig under the indirect tax regime. It will then make a presentation to the Council next month, officials said.
While a change in tax slabs may not happen immediately, the committee is expected to review the list of items in each GST slab and decide on their fitment accordingly. For instance, items of mass public use are likely to be recommended for a shift from the high rate slab of 12 per cent to 5 per cent, one of the officials said.
“A change in slabs will not happen immediately. Around 70 per cent of the GST revenue is coming from 18 per cent tax slab. Even a 1 percentage points reduction in the 18 per cent rate to 17 per cent would result in 3.5 percentage points reduction in revenue. So the change in slabs is not going to be easy,” a senior government official told The Indian Express.
