The Group of Ministers (GoM) on Rate Rationalisation on Thursday said that there is no need to change tax slabs for now. The ministerial panel met to discuss the rate rejig under the indirect tax regime and is expected to make a presentation to the GST Council, which will meet next month.
After the meeting, panel members told Business Today TV that a lot of issues were discussed at the meeting. The rate revision was discussed, however, nothing was finalised.
"All members presented their views and discussed rate slabs, not every member was in favour of slab changes," one of the panel members said.
Bihar’s Deputy Chief Minister Samrat Chaudhary was the convenor of the seven-member GoM on rate rationalisation under GST. Other members of the GoM are Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, Rajasthan Medical, and Health Services Minister Gajendra Singh along with West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K N Balagopal.
Before the meeting, it was reported that the committee is anticipated to assess the items listed under each GST slab and make decisions regarding their fitment as required. Particularly, products widely used by the public may be suggested for a transition from the 12% high-rate slab to the 5% slab.
In the last GST Council meeting held on June 22, Finance Minister Nirmala Sitharaman announced several significant measures, including Aadhaar biometric integration, exemptions in railway services, and others.
Here are the top highlights:
Aadhaar-based biometric authentication: Finance Minister Nirmala Sitharaman announced the rollout of biometric-based Aadhaar authentication on a nationwide scale. This strategic implementation is aimed at combating fraudulent activities related to input tax credit claims using counterfeit invoices. The primary objective of this initiative is to improve tax compliance by deterring the prevalence of deceptive practices like fake invoicing within the tax system.
GST on milk cans: Regarding the GST rate on milk cans, a uniform tax rate of 12% has been established for all types of milk cans, irrespective of whether they are constructed from steel, iron, or aluminum materials. This decision seeks to streamline and standardize the taxation approach applicable to these particular products across the board.
Petrol and diesel: The central government has expressed its intention to incorporate petrol and diesel into the Goods and Services Tax (GST) framework. However, this transition is contingent upon achieving a consensus among states concerning the appropriate tax rates to be enforced. By aligning petrol and diesel products within the GST system, the government aims to establish a more consistent and equitable taxation structure for fuel commodities throughout the nation.
Indian Railways services: The GST council decided to grant a GST exemption on platform tickets. This move comes as a part of the broader efforts to alleviate the financial burden on passengers and improve the affordability of railway services.
Reduction in GST for carton boxes: The GST rate for various types of carton boxes has been decreased from 18% to 12%. This significant reduction aims to benefit both manufacturers and consumers by effectively lowering the overall cost associated with these essential packaging materials.
Exemption for hostel accommodation: Services related to hostel accommodation outside educational institutions have been granted an exemption from GST for amounts up to ₹20,000 per person each month. This specific exemption is strategically planned to enhance the affordability of hostel accommodation for non-student residents.