A new six-member Group of Ministers (GoM) on GST rationalisation, established on 2 July 2024, is set to convene its inaugural meeting soon, in preparation for the 54 GST Council session anticipated in the third week of August. Discussions among central and state government officials have commenced on rationalising the Goods and Services Tax, with sources informing Business Today TV that a three-tier rate structure is under consideration.
This proposed structure may involve slabs of either 8%, 16%, and 24%, or 9%, 18%, and 27%. Both scenarios would include provisions for tax relief on essential goods and differentiated rates for sin goods such as cigarettes, tobacco, and pan masala. A government official mentioned, ‘We are still in the discussion phase. The final recommendations will be submitted to the GoM on rate rationalisation.’
Business Today TV has reached out to the Ministry of Finance and the GST Secretariat for further details, which will be updated once available.
The newly formed GoM, led by Samrat Chaudhary, Deputy Chief Minister of Bihar, includes Suresh Khanna, Finance Minister of Uttar Pradesh; Gajendra Singh, Minister of Medical and Health Services; Chandrima Bhattacharya, Finance Minister of West Bengal; Krishna Gowda, Revenue Minister of Karnataka; and KN Balagopal, Finance Minister of Kerala. This group is expected to meet before the 54th GST Council meeting in August.
During a recent post-budget roundtable with Business Today TV, CBIC Chairman Sanjay Kumar Agarwal stated, ‘The GoM committee is reviewing the GST rates and commodities to align them with the appropriate rates. There may be a need for a second exercise to consider special rates for specific commodities. The committee will assess whether to retain four rate slabs or further simplify the structure.’
Following the last GST Council meeting in June, Union Finance Minister Nirmala Sitharaman noted, ‘The GoM on rate rationalisation has made significant progress. We will allow the new GoM time to review and update recent developments. They will present a status report at the next meeting, where we will begin discussions on rationalisation.’
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