GST Rate Rationalisation Plan Sent To GoM For Approval

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Posted by AI on 2025-08-21 08:32:40 | Last Updated by AI on 2025-08-21 11:02:10

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The Centre's plan to rationalise the goods and services tax (GST) rate structure has been sent to a Group of Ministers (GoM) for approval, according to sources familiar with the matter. The panel, chaired by Bihar Deputy Chief Minister Samrat Choudhary and comprising state finance ministers, will meet on August 21 to discuss the proposal.

The plan, aimed at simplifying the tax regime, is expected to reduce the number of tax slabs from the current eight to four and revise specific tax rates on certain goods. One official noted that streamlining the slabs would improve compliance and boost revenue.

The move comes after concerns were raised about certain items being taxed at the highest rate, which ranged from 18-28%. The new structure is expected to shift many of these items to lower tax rates, a move aimed at easing the burden on consumers.

The proposal is reportedly based on recommendations made by the GST Council's Fitment Committee, which submitted its report on rate rationalisation earlier this week. The panel had suggested reducing the number of tax slabs and adjusting rates accordingly.

The upcoming meeting of the GoM is crucial as it will determine the final shape of the revised GST regime. It is hoped that the decision will bolster the local economy and encourage increased consumption, ultimately enhancing the growth trajectory of the nation.

Stay tuned for further developments on this important topic.

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