The Cabinet Committee on GST Rate Rationalization is scheduled to meet on September 25 to discuss adjustments in tax brackets and rates.
“The Goa government meeting on rate rationalisation is scheduled to be held in Goa on September 25,” an official told PTI. The six-member Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, last met on August 22 and had submitted a status report to the GST Council on September 9.
In its August meeting, the committee directed a coordination committee, comprising central and state tax officials, to analyse the impact of the tax change on several items and collect further data.Currently, the Goods and Services Tax (GST) has four tiers of tax – 5, 12, 18 and 28 percent.
-
Also read: Tube Investments fined by Uttarakhand GST authorities
Under GST, essential goods are exempt or taxed at the lowest rate, luxury and reduced-tax goods are taxed at the highest rate, and luxury and sin goods are taxed at a maximum rate of 28 percent in addition to the tax.
There has been talk of combining the 12 percent and 18 percent tax brackets, but nothing has been proposed so far.
The average GST rate is around 12%, which is below the revenue-neutral rate of 15.3%. This has created the need to initiate discussions on rationalization of GST rates. States like West Bengal and Karnataka are not in favor of adjusting GST rates so far.
“I am saying there should be no change in the GST tax brackets,” West Bengal Finance Minister Chandrima Bhattacharya had said after a government meeting in August.
Karnataka Revenue Minister Krishna Byleth Gowda said the state government needed to analyse whether there was any need to “disrupt” the GST regime, which is currently largely stable.
“What will be achieved by obstructing it? I have said we will discuss (reducing slabs) in the next meeting,” Bhaia Gowda said.
The six-member government also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh and Kerala Finance Minister KN Balagopal.
-
Also read: Despite legal clarity, bringing online money gaming entities under tax net remains a tough challenge: DGGI
