: No consensus on GST rate rationalisation #finance #StockMarketNEWS #Business New Delhi: A panel of state ministers on goods and services tax GST rate rationalisation on Friday failed to reach a consensus

Posted in: #finance #StockMarketNEWS #Business

No consensus on GST rate rationalisation #finance #StockMarketNEWS #Business
New Delhi: A panel of state ministers on goods and services tax GST rate rationalisation on Friday failed to reach a consensus as some members opposed changes to tax slabs and rates, sources said.

The Group of Ministers will, however, present a status report to the GST Council on the consensus which was arrived at the previous meeting of the GoM on November 20, 2021, they added.

The GoM will seek an extension to submit its final report, they said, adding issues of tax rates will also be raised in the upcoming Council meeting later this month.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, is scheduled to meet on June 28 and 29 in Srinagar.

The Council had last year set up a seven-member panel of state ministers, headed by Karnataka Chief Minister Basavaraj Bommai, to suggest ways to augment revenue by rationalising tax rates.

The GoM has been mandated to review items under inverted duty structure to help minimise refund payout, and review the GST exempt list with an objective to expand the tax base and eliminate breaking of input tax credit (ITC) chain.

Under GST, a four-tier structure exempts or imposes a low rate of tax 5% on essential items and levies the top rate of 28% on cars and demerit goods. The other slabs of tax are 12% and 18%.

Besides, a cess is imposed on the highest slab of 28% on luxury, demerit and sin goods.