CBIC Calls GST Rate Change Reports Premature and Speculative

The Central Board of Indirect Taxes and Customs (CBIC) responded to recent media reports referring to an intended change in the Goods and Services Tax (GST) rates. According to CBIC, the reports that have been circulating are speculative and not confirmed.

The GST rate rationalization matters were referred to the GoM to be examined, and a Group of Ministers was set up for this purpose that includes six state ministers from Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, and Kerala, whose convenor happens to be the Deputy Chief Minister of Bihar.

However, the CBIC clarified that the GoM functions as an advisory body alone and is not empowered to approve or implement GST rate changes. The authority has yet to make recommendations on GST rates, including any modifications and vests with the GST Council. The council, chaired by the Union Finance Minister and consisting of ministers from all states and union territories, is the decision-making body on GST-related matters.

It was also observed that so far, the GST Council has not received any suggestions from the GoM. The GoM is still in the process of finalizing its suggestions, which would then be submitted to the council for consideration. Only after the deliberations by the council will there be a decision on the GST rates.

In this regard, CBIC highlighted that the media reports on the issue are premature and speculative since no official conclusions or proposals have been presented to or discussed by the GST Council.