No Need to Change Tax Slabs for Now: GST Rate Rationalisation Committee
By: Admin | August 22, 2024 | Categories: GST News | 4 Min Read
GoM Announces No Immediate Changes to GST Tax Slabs
The Group of Ministers (GoM) on GST Rate Rationalisation, led by Bihar Deputy Chief Minister Samrat Chaudhary, has decided not to change GST tax slabs at this time. The GoM recently met to evaluate possible adjustments, but they chose not to implement any changes immediately.
Discussion Outcomes
No Immediate Changes to Tax Slabs
The GoM thoroughly discussed the current GST rate slabs. Despite various opinions from the members, they did not reach a consensus on altering the slabs. Chaudhary highlighted that while discussions were comprehensive, the committee decided against making any modifications at this stage.
Next Steps: GST Council Meeting
Looking ahead, the GoM will present its findings at the upcoming GST Council meeting in September. This meeting will be pivotal as the Council reviews and considers potential adjustments, particularly for items widely used by the public. The Council will evaluate the recommendations and decide whether changes are necessary.
Recent GST Council Updates
Aadhaar Biometric Authentication
The GST Council has introduced nationwide Aadhaar biometric authentication. This step aims to prevent fraudulent claims for input tax credits, thereby enhancing the integrity of the GST system.
GST on Milk Cans
A new rule has established a uniform 12% GST rate on all milk cans, irrespective of their material. This change simplifies the tax structure for dairy products and ensures consistency.
Petrol and Diesel under GST
The central government is exploring the possibility of including petrol and diesel under GST. However, this move depends on achieving agreement with state governments on the appropriate rates.
Railway Services
The GST exemption on platform tickets has been implemented. This exemption reduces travel costs for passengers and supports more affordable transportation options.
Carton Boxes
The GST rate for carton boxes has been reduced from 18% to 12%. This reduction benefits the packaging industry by lowering costs.
Hostel Accommodation
A GST exemption now applies to hostel accommodation fees up to ₹20,000 per person per month. This adjustment helps decrease costs for students and residents.
Looking Ahead
These recent updates reflect the ongoing efforts to refine the GST framework. As the GST Council prepares for its September meeting, businesses and stakeholders should remain informed about potential changes. The upcoming decisions will likely influence future tax policies and impact business operations.
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