The group of ministers (GoM) tasked with simplifying the goods and services tax (GST) structure will meet on October 20 to deliberate on rate rationalisation proposals related to food, footwear and textile items, a source told Moneycontrol. The items under review are in the 12 percent tax bracket.
Led by Bihar deputy chief minister Samrat Chaudhary, the GoM on GST rate rationalisation has been tasked with simplifying the tax structure, now in its eighth year since the introduction of the indirect tax regime. Rationalisation is expected to ease the compliance burden and also boost collections, experts say.
Reconstituted on November 1, 2023, the GoM is likely to submit its recommendations later this month, which will allow the GST Council to take them up in the November meeting.
The 33-member council is chaired by the Union finance minister, with each state nominating its finance minister or any other minister to the body. The council takes its decision by a three-fourths majority.
As reported by Moneycontrol, the GoM is likely to look at the gradual elimination of the 12 percent slab by moving all the items to consolidate the system into a three-tiered structure of 5 percent, 18 percent, and 28 percent rates.
