GST Rate Rationalisation Happening Soon? MoS Finance Answers

The Goods and Services Tax (GST) Council is not considering any changes to the GST rates for services and products in its upcoming meeting scheduled for December 21, 2024, according to Minister of State for Finance, Pankaj Chaudhary.

In response to a query in Parliament, Chaudhary clarified that the GST Council had previously formed a Group of Ministers (GoM) to examine the possibility of rationalising GST rates during its 45th meeting held on September 17, 2021. However, he confirmed that no report from the GoM is pending for the Council's consideration, implying that there are no immediate plans to review or alter the existing rates.

The clarification also dispelled rumors that the GST Council might reduce the tax rates on several essential items, including those commonly used by the public, from the current 12 per cent slab to the 5 per cent slab.

The matter of rate rationalisation has been under discussion for some time, with a special panel of State Ministers having previously recommended changes to benefit the common man. However, the Finance Minister's response has made it clear that no such proposal is up for discussion in the upcoming meeting.

This development comes as part of the ongoing discussions and debates surrounding GST reforms, with the government seeking to balance tax revenue generation and the economic welfare of citizens. The next GST Council meeting will be closely watched for any other potential decisions or announcements related to tax policies.