GST Council Meet on June 17 likely to discuss GST Rate Rationalisation

GST Council Meet on June 17 likely to discuss GST Rate Rationalisation

GST Council Meet on June 17 likely to discuss GST Rate Rationalisation

The Group of Ministers, which was led by Karnataka Chief Minister Basavaraj Bommai, set up by the GST Council last year to suggest ways for augmenting revenue by rationalising tax rates and correcting anomalies in the tax structure, is likely to meet on June 17th.

The last meeting of the panel was on November, 2021.

The discussion is likely to be a proposal to shift rate slabs to 7/8% from the current rate of 5%; and to 20% from 18%.

The GoM, was given time to submit the final report before the next GST Council Meeting.

The Group may also discuss:

  1.  Reducing the list of exempted items under the GST regime;
  2. Correction of Inverted Duty Structure in textiles.

The Meeting of the GST Council is likely to be held in last week of June.

The current GST slabs are – 5%, 12%, 18%, & 28%.

The 18% slab has 480 items. The 70% of the GST collections are from these 480 items.

Other than the above, there exists an exempted list of items like – unbranded items, unpacked food items. The exempted list does not attract GST.

In May, GST collections rise to am amount of Rs. 1,40,885 CR (44% YoY Jump) [CGST – Rs. 25,036 CR, SGST – Rs. 32,001 CR, & IGST – Rs. 73,345 CR (includes Rs. 37,469 CR collected on import of goods) & cess – Rs. 10,502 CR (Includes Rs. 931 CR on import of goods)].

But, as compared to collections in April the same was a drop of 16%. 

Source: News18

 

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