look news india
New Delhi, 15 October (Hindustan Reporter). The next meeting of the Group of Ministers (GoM) on proposals to rationalize GST rates related to food, footwear and textile items will be held on October 20. It is believed that a proposal to reduce the GST rate of food, footwear and textile items to 5 percent tax slab can be prepared in the GOM meeting. The GOM constituted to rationalize GST rates and simplify the GST structure will be chaired by Bihar Deputy Chief Minister Samrat Chaudhary.
Experts say that simplifying the GST structure and rationalizing the rates will make it easier for all the stakeholders related to GST to work. Along with this, the burden of rules will also reduce and there will be an overall increase in GST collection. It is believed that the proposals for rationalizing the rates of about 100 items can be discussed in the GOM meeting. However, first of all food, footwear and textile items will be discussed because these are the items used in people's daily life.
It is being told that the items whose GST rates will be reviewed in the meeting to be held on October 20 are currently in the 12 percent tax slab. After the discussion, the GoM will prepare a suggestion paper on its part, which will be presented in the next meeting of the GST Council to be held in the month of November. A Group of Ministers (GoM) was constituted on 1 November 2023 to simplify the GST framework and rationalize GST rates. Apart from Samrat Chaudhary, the GOM also includes West Bengal Finance Minister Chandrima Bhattacharya, Uttar Pradesh Finance Minister Suresh Kumar Khanna, Kerala Finance Minister KN Balagopal, Rajasthan Health Minister Gajendra Singh and Karnataka Revenue Minister KB Gowda.
In its earlier meeting, the Group of Ministers had talked about keeping only three slabs in GST – 5 percent, 18 percent and 28 percent. In such a situation, the issue of phasing out the 12 percent slab can also be discussed in the meeting to be held on October 20. However, it is also being said that it will take time to completely eliminate the 12 percent slab, because it will also affect the revenue received by the states. In such a situation, before agreeing to this proposal, all the states will definitely review their economic situation and the impact on revenue, which may take time.