Ministers meet on GST rationalisation and fail to reach a consensus

Ministers meet on GST rationalisation fails

A delegation of provincial ministers on the GST level adjustment on Friday failed to reach an agreement as some members opposed changes to tax cuts and rates, sources said.

The Ministerial Team, however, will present a status report to the GST Council on the consensus reached at the last Group of Ministers meeting on November 20, 2021, they added.

Group of Ministers will need an extension to submit its final report, they said, adding tax issues will also be considered at the next Council meeting later this month.

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

Council last year established a seven-member panel of provincial ministers, led by Karnataka Prime Minister Basavaraj Bommai, to propose ways to increase revenue by raising tax rates.

Group of Ministers is mandated to review items under the perverted framework to help reduce refund payments and review the GST exemption list to increase the tax base and eliminate inconsistencies in the inclusive tax credit (ITC) chain.

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

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