Finance Ministry Starts Process for Deciding on New Convenor of GoM on GST Rate Rationalisation
The finance ministry has initiated the process of consultation with other members of the panel. "Karnataka is likely to continue as a member of the GoM. We are not proposing any convenor. It will be selected based on consultation among GoM members," one of the sources told PTI.
New Delhi, June 11: The finance ministry has started the process of deciding on a new convenor of the GoM on GST rate rationalisation, sources said. The position has been lying vacant following the change of government in Karnataka. Former Karnataka chief minister Basavaraj Bommai was the convenor of the seven-member Group of Ministers (GoM) set up under the GST Council in September 2021.
The finance ministry has initiated the process of consultation with other members of the panel. "Karnataka is likely to continue as a member of the GoM. We are not proposing any convenor. It will be selected based on consultation among GoM members," one of the sources told PTI. Finance Ministry Sets Up Panel To Review National Pension System for Government Employees.
Besides Karnataka, other members of the GoM are Bihar, Goa, Kerala, Uttar Pradesh, Rajasthan, and West Bengal. Usually, the senior-most member in a GoM is named as the convenor of the panel. Since current Karnakata Chief Minister Siddaramaiah also holds the finance portfolio, he may be named as the new convenor of the GoM on rate rationalisation.
The GST Council, which is headed by the Union Finance Minister and comprises state counterparts, had in September 2021 decided to set up a GoM on rate rationalisation and correction of inverted duty structure. The objective was to simplify the rate structure, review the GST exemption list and enhance GST revenues. Finance Minister Nirmala Sitharaman Announces Committee Led by Finance Secretary to Improve National Pension Scheme (Watch Video).
In June 2022, the GoM submitted an interim report to the GST Council proposing changes in tax rates for some goods and services to rationalise the levy.
The GST report, which was accepted by the council, suggested 5 per cent GST on 'pre-packaged and labelled' curd, lassi, puffed rice, and wheat flour, which are usually produced by large manufacturers, besides correction in inverted duty for a host of items, including edible oil, coal, LED lamps, printing/drawing ink, finished leather and solar water heater. Currently, the GST regime has five broad tax slabs of zero, 5, 12, 18, and 28 per cent. A cess is levied over and above the highest 28 per cent rate on luxury and demerit goods.
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