The Group of Ministers (GoM) has the task of easing the structure of the Goods and Services Tax (GST) and for that, the meeting will be conducted on October 20 to deliberate on rate rationalization proposals pertinent to the foods, footwear, and textile items. The reviewed items are in the 12% tax bracket.
Bihar Deputy Chief Minister Samrat Chaudhary led the GoM and has been tasked with the GST rate rationalization with easing the tax structure, now in its 8th year as the start of the indirect tax regime. Rationalization is anticipated to simplify the compliance load and indeed enhance the collections.
The GST GoM on rate rationalization furnishes certain rate suggestions in a report for the next GST Council meeting likely to be held in November.
GST GoM may discuss the rate rationalization proposals on almost a hundred items. Group of Ministers (GoM) will think about food items, footwear, and textiles which impact the common man and daily life.
Uttar Pradesh finance minister Suresh Kumar Khanna, his West Bengal and Kerala counterparts Chandrima Bhattacharya and KN Balagopal, Rajasthan health minister Gajendra Singh, and Karnataka revenue minister Krishna Byre Gowda are the other GoM members.
The GoM, which reconvened on November 1, 2023, is expected to present its recommendations later this month, enabling the GST Council to review them in their November meeting.
The council, which comprises 33 members, is led by the Union finance minister, while each state appoints its finance minister or another minister to participate in the council. The council carries its decision by a three-fourths majority.
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The Group of Ministers is expected to consider the step-by-step removal of the 12 per cent tax bracket by adjusting all items to form a three-tier tax system with rates of 5 per cent, 18 per cent, and 28 per cent.
Although moving items out of the 12 per cent category is a positive step, it will require time since states will need to thoroughly assess the revenue impact before reaching a consensus.
