The Group of Ministers ( GoM ) on GST rate rationalisation has reviewed the possibility of revising tax rates on over 100 items, aiming to reduce the burden on the common man , reported PTI. West Bengal Finance Minister Chandrima Bhattacharya said on Thursday that the GoM is considering lowering the GST on certain goods from 12% to 5%, and the next meeting is scheduled for October 20. Among the key items up for discussion are bicycles and bottled water.
During the meeting held on Wednesday, the GoM also discussed reducing tax rates on medical and pharmaceutical items currently in the 12% tax slab. Further deliberation on this matter will take place in the October meeting. To balance potential revenue losses from these reductions, the GoM is exploring the option of increasing the GST on some goods, such as aerated water and beverages, which are currently taxed at 28%, plus cess.
"States cannot bear any reduction in GST revenue at this point of time," PTI quoted Bhattacharya as saying. Currently, India has a four-tier GST structure with rates of 5%, 12%, 18%, and 28%. As per GST laws, tax rates on goods and services can be raised to as high as 40%.
The average GST rate has dropped to 11.56% in 2024, below the revenue-neutral rate of 15.3%.
This has triggered discussions on GST rate rationalisation. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, Developer and Lead Instructor View Program Artificial Intelligence(AI) B.
