According to insiders, a group of state ministers working on GST rate rationalisation was unable to achieve an agreement because some members were opposed to modifications to tax slabs and rates. They stated that the Group of Ministers will provide a status report to the GST Council on the consensus reached at the Group of Minister’s previous meeting on November 20, 2021.
- They added that the GoM will seek an extension to deliver its final report, and that tax rate problems will be discussed at the forthcoming Council meeting later this month.
- The GST Council, which is chaired by Finance Minister Smt. Nirmala Sitharaman, will meet in Srinagar on June 28 and 29.
- Last year, the Council convened a seven-member council of state ministers, led by Karnataka Chief Minister Shri Basavaraj Bommai, to recommend measures to increase revenue by lowering tax rates.
- The GoM has been tasked with reviewing items with an inverted duty structure in order to reduce rebate payouts and reviewing the GST exempt list in order to broaden the tax base and avoid ITC chain breaks.
- A four-tier structure under GST exempts or taxes basic commodities at a low rate of 5%, while autos and demerit goods are taxed at a peak rate of 28%. The other two tax brackets are 12 and 18 percent.
Important Takeaways For All Competitive Exams:
- Finance Minister of India: Smt. Nirmala Sitharaman
- Chief Minister of Karnataka: Shri Basavaraj Bommai