The finance ministry on December 9 reiterated “that no report from the Group of Ministers (GoM) to look into rate rationalisation is pending for consideration of the GST Council.”

This was informed in the lower house of the Parliament by the Minister of State for Finance, Pankaj Chaudhary. He was responding to a question on whether the Council is considering any proposal to reduce tax rates on a host of items from 12 percent to 5 percent as per the recommendations of a panel of state ministers.

The clarification comes after the Central Board of Indirect Taxes and Customs (CBIC) last week said the GoM on rate rationalisation is yet to submit its recommendations to the GST Council, which is the final decision making body on the matter.

In a post on X, the CBIC said the GST Council, chaired by Union Finance Minister and comprising state counterparts, has not yet deliberated on any GST rate changes and the (GoM) is only a “recommendatory” body.

This followed several media reports on the recommendations from the GoM on rate rationalisation, including a hike on the tax rate on sin goods like aerated beverages, cigarettes, tobacco and related products to 35 percent from 28 percent.

The GST Council will next meet on December 21.

Source: MoneyControl