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vinti | Jun 15, 2022 | Views 7474

GST: Group of Ministers to Meet & Likely To Discuss GST Rate Rationalization on June 17

GST: Group of Ministers to Meet & Likely To Discuss GST Rate Rationalization on June 17

On June 17, the Karnataka Chief Minister Basavaraj Bommai-led Group of Ministers (GoM) is anticipated to meet. The GoM was established last year by the GST Council to offer suggestions for increasing revenue by rationalizing tax rates and addressing anomalies in the tax structure. According to sources, the panel of ministers will likely consider a plan to change the rate slabs from the current 5% to either 7% or 8% and from 18% to 20%, according to CNBC-TV18.

The GoM may also talk about reducing the number of products on the GST regime’s list of exempted goods since it has until the next GST Council meeting to present its final report.

According to the sources, the suggestion to remedy the inverted duty structure in textiles may also be brought up by the panel of state ministers. A situation where the tax rate on purchased inputs is higher than that on finished items is referred to as an “inverted duty structure.”

The final week of June is likely to see a meeting of the GST Council, which is the highest decision-making body under the GST regime. Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Goa, and Kerala are among the states that make up the GoM. In November 2021, the panel last convened.

There are four GST slabs available at the moment: 5%, 12%, 18%, and 28%. Approximately 70% of the GST collections come from the 480 goods under the 18% slab. In addition, there is a list of things that are not subject to the levy, such as unbranded and unpackaged food items.

May saw a 44% increase in GST collections over the same month last year, reaching Rs 1,40,885 crore. However, compared to the GST revenues in April, there was a 16% decrease. In May 2022, the total GST income received was Rs 1,40,885 crore, of which the CGST portion was Rs 25,036 crore, the SGST portion was Rs 32,001 crore, the IGST portion was Rs 73,345 crore (including Rs 37469 crore collected on import of goods), and the cess portion was Rs 10,502 crore (including Rs 931 crore collected on import of goods).

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