GOM 2nd Term: More Changes in GST Rate, Exemptions for Inverted Duty

The GST official might revise the rate, for some services or products and remove some of the exemptions in a bid to revise the instance of the inverted duty.

A group of ministers (GoM) led by Karnataka Chief Minister Basavaraj Bommai would work on the 2nd round of amendments for the GST rate.

“The inverted duty correction exercise has not concluded yet and there is more work left,” Group of ministers (GOM) would be used to work on the subsequent list, and the proposal for that might be asked by the council in the subsequent meeting that shall seem to be held in September.

“The last two-three meetings were productive, with many important decisions being taken. But some items are still pending, including textiles,” specified by the council.

When needed the tax council shall involve within the industry for feedback on the revised rate in the inverted duty structure.

GST official in its 45th meeting in September 2021 would improve the inverted duty structure towards the footwear and textiles industry started from the date 1st Jan 2022. The officials would amend the tax on the footwear and finish the apparel of any value to 12% from a former 5% GST for the sale value up to Rs 1000 per piece for the apparel and per pair for the footwear.

The move of the administration has been welcomed by the experts while the traders and manufacturers have opposed the same, mentioning that the GST rate rise shall affect the textile industry of the nation and result in the loss of jobs. Various businesses and states would ask to roll back the surged rates.

Because of the opposition to the revised rate (higher), GST officials, a day prior to the amendment shall come into force and roll back the amendment.

But, excluding the textiles, the officials would carry on to revise the duty inversion.