Central and state authorities officers have began discussions on rationalising the Items and Companies Tax, with sources telling Enterprise Right this moment TV {that a} three-tier charge construction can be among the many choices on the desk.
This could indicate three slabs of both 8 p.c, 16 p.c and 24 p.c charges, or 9 p.c, 18 p.c and 27 p.c. Each choices embody provisions for the abatement of products of fundamental necessity and differential remedy for sin items like cigarettes, tobacco, and pan masala.
“We’re at dialogue stage. The ultimate suggestions would go to the Group of ministers (GoM) on charge rationalisation,” mentioned a authorities official.
Enterprise Right this moment TV is awaiting replies to queries despatched to the Ministry of Finance and the GST Secretariat and the small print will likely be up to date as soon as made obtainable.
The brand new six-member GoM on charge rationalisation, constituted on July 2, 2024, is headed by Samrat Chaudhary, Deputy Chief Minister of Bihar, because the convener. Different members are Suresh Khanna, Minister for Finance, Uttar Pradesh; Gajendra Singh, Minister of Medical and Well being Companies; Chandrima Bhattacharya, Minister of Finance, West Bengal; Krishna Gowda, Minister of Income, Karnataka; and KN Balagopal, Minister of Finance, Kerala.
This group is predicted to carry its first assembly quickly, forward of the 54th GST Council gathering doubtless within the third-week of August.
Throughout a post-budget roundtable with Enterprise Right this moment TV, CBIC Chairman, Sanjay Kumar Agarwal mentioned, “the group of ministers committee is trying into this matter. GST charges and commodities should be matched with the suitable charge. A second train could possibly be having particular charges for particular commodities. The committee will look into if there’s a want of 4 charge slabs or simplify it additional”.
After the assembly of the GST Council final June, Union Finance Minister Nirmala Sitharaman had mentioned, “the GoM on charge rationalisation has carried out substantial work. We’ll give time to the brand new GoM to check and revise all of the latest updates. Within the subsequent assembly, they are going to current a standing report and we are going to start discussions on rationalisation”.
