The Fitment Committee under the GST Council has suggested three new options for a potential three-rate GST structure, which will be evaluated by the Group of Ministers (GoM). A panel of state ministers is set to meet on September 24 and 25 in Goa to discuss possible changes to GST Rate Review, focusing on 70 to 100 items. The GoM will review feedback from the recent 54th GST Council meeting held in early September.
Sources indicate that while the panel may consider minor adjustments to GST rates across various categories, it is unlikely to finalise a broader restructuring of GST slabs at this time. Bihar Deputy Chief Minister Samrat Chaudhary leads the GoM on rate rationalisation. The GoM previously submitted two status reports to the GST Council on September 9 and will now focus on reviewing rates on an item-by-item basis.
The current GST framework consists of four slabs: 5%, 12%, 18%, and 28%, with essentials taxed at the lowest rates and luxury items subject to the highest rates, including an additional cess. The panel’s review will determine if further adjustments are necessary to optimise the structure without negatively affecting essential goods.
In its September 9 meeting, the GST Council postponed a proposal to exempt life and health insurance from GST. This proposal has been referred to the expanded GoM on rate rationalisation, which will thoroughly examine it and present findings to the GST Council in the next session.
The GoM’s GST Rate Review of 70-100 products is a strategic move to fine-tune GST rates without overhauling the entire structure. Businesses should stay alert for changes, particularly if they deal in items under scrutiny.
Navigating GST rate changes can be complex, especially with the GoM reviewing up to 100 products. Vakilsearch offers expert tax advisory services to help businesses understand and adapt to evolving GST regulations. Our team of specialists ensures compliance, minimising tax liabilities while keeping you updated on crucial changes. Stay ahead with Vakilsearch —your partner in tax strategy and compliance!
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