GST Council-Appointed GoM to Meet on June 17; likely to discuss GST Rate Rationalisation
Karnataka Chief Minister Basavaraj Bommai-led group of ministers (GoM), which was set up last year by the GST Council to suggest ways for augmenting revenue by rationalising tax rates and correcting anomalies in the tax structure, is likely to meet on June 17. The panel of ministers is likely to discuss a proposal to shift rate slabs from the current five per cent to seven or eight per cent; and from 18 per cent to 20 per cent, sources told CNBC-TV18.
The GoM, which was given time to submit its final report before the next GST Council meet, might also discuss pruning the list of exempted items under the GST regime. The panel of state ministers may also discuss the proposal to correct inverted duty structure in textiles, the sources said.
An inverted duty structure refers to a situation where the tax rate on inputs purchased is higher than that on finished goods.
The GST Council, which is the highest decision-making body under the GST regime, is likely to meet in the last week of June. The GoM member states include Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Goa and Kerala. The panel last met in November 2021.
Currently, there are four GST slabs — 5 per cent, 12 per cent, 18 per cent, and 28 per cent. The 18 per cent slab has 480 items, from which about 70 per cent of the GST collections come. Apart from this, there is an exempt list of items like unbranded and unpacked food items that do not attract the levy.
GST Collections in May hit an amount of Rs 1,40,885 crore, which was a 44 per cent year-on-year jump. However, it was a drop of 16 per cent as compared to the GST collections in April. The gross GST revenue collected in May 2022 was Rs 1,40,885 crore, of which CGST is Rs 25,036 crore, SGST is Rs 32,001 crore, IGST is Rs 73,345 crore (including Rs 37469 crore collected on import of goods) and cess is Rs 10,502 crore (including Rs 931 crore collected on import of goods).
