GoM on GST Rate Rationalisation Likely to Discuss Merging 12%, 18% Slabs on September 25
By: Admin | September 24, 2024 | Categories: GST Recent News | 4 Min Read
The Group of Ministers (GoM) on GST rate rationalisation, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, is set to meet on September 25 in Goa to discuss possible changes in the current tax structure. The main focus will be on merging the 12% and 18% GST slabs, a move that some states are approaching cautiously.
The GoM had previously convened on August 22, after which they submitted a status report to the GST Council. The fitment committee was instructed to examine the potential impact of any tax changes. Currently, the GST framework has four slabs — 5%, 12%, 18%, and 28% — with essential goods often falling in lower slabs, and luxury items in the highest.
However, some states, such as West Bengal and Karnataka, have expressed reservations about modifying the GST rates. Karnataka’s Revenue Minister Krishna Byre Gowda questioned whether there was a need to disrupt the now-stabilized system.
Additionally, during the 54th GST Council meeting on September 9, a new GoM was established to explore GST rate reductions for health insurance, with a decision expected by November.
Key Points:
- Merging Slabs: The proposal to merge the 12% and 18% GST slabs is up for discussion.
- State Reservations: Some states, including West Bengal and Karnataka, have expressed concerns about changing the existing tax structure.
- Health Insurance: A separate GoM is reviewing GST rates for medical health insurance, with a report due by October.
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