No decision on rationalization of GST rates, group of ministers may meet in May

The report on rationalization of GST rates by the GoM is yet to be finalized and a decision in this regard will be taken in due course. According to sources, the Group of Ministers (GoM) of the states will consider these recommendations and finalize them. Later it will be sent to the GST Council headed by Finance Minister Nirmala Sitharaman. The finance ministers of the states are also included in the council.

Recommendation for sharing of GST rate

Sources said that the rationalization of rates by the GoM is yet to be considered. Actually, some economists believe that the rate of five percent of GST should be divided into three and eight percent and the remaining three rates 12, 18, 28 should be kept unchanged.

Changing rates a political issue

However, no decision has been taken yet to rationalize the rates. Sources said the change in rates is a political issue and its impact would be visible when the GST Council considers it.

Chief Minister of Karnataka is the head of the Group of Ministers

The seven-member Group of Ministers is headed by Karnataka Chief Minister Basavaraj S Bommai. The group includes finance ministers from West Bengal, Kerala, Goa, Bihar, Uttar Pradesh and Rajasthan. A source told the news agency that these ministers may meet next month. The date of the meeting has not yet been decided but it is expected to be held in mid-May.

GoM is eyeing inflation rate

According to the source, the rise in oil prices has led to an increase in the inflation rate. The GoM is eyeing this. Presently there is a four tier structure in GST. That is, the rates of 5 percent, 12 percent, 18 percent and 28 percent are included. There are special rates applicable on some products.

 

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