GST Council-Appointed GoM to meet on June 17 to discuss GST rate rationalisation
On June 17, the Karnataka Chief Minister Basavaraj Bommai-led Group of Ministers (GoM) is expected to meet. The GoM was established last year by the GST Council to offer suggestions for increasing revenue by rationalising tax rates and addressing anomalies in the tax structure. According to sources, the panel of ministers will likely discuss a plan to change the rate slabs from the current 5% to either 7% or 8% and from 18% to 20%, according to sources.
The GoM may also talk about reducing the number of items on the GST regime’s list of exempted goods because it has time until the next GST Council meeting to submit its final report. The proposal to correct inverted duty may also be discussed by the group of state ministers. A situation where the tax rate on purchased inputs is higher than that on finished goods is referred to as a “inverted duty structure.”
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Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Goa, and Kerala are among the states that make up the GoM. The panel last met in November 2021 after being established in September of last year. Once the GoM’s recommendations are complete, they will be presented to the Council at its subsequent meeting for a decision.
The last week of June is likely to see a meeting of the GST Council, which is the highest decision-making body under the GST regime. In a landmark decision, the Supreme Court stated last month that the GST Council is only a recommendatory body and that neither the Center nor the States are bound by its recommendations.
The court determined that the GST Council’s recommendations would be persuasive. The Court further ruled that the state legislatures and Parliament have equal authority to enact laws pertaining to GST.
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