Revenue Loss
States hesitant to expedite GST rationalisation, says finance ministry source
This story was originally published at 22:39 IST on 27 August 2024
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NEW DELHI – State government officials are slightly reluctant to expedite the rationalisation of Goods and Services Tax rates, a finance ministry official said today. "They are scared of losing revenue," the official said.
Rationalisation of rates has been at the top of the agenda of the GST Council since the introduction of the taxation system. The council has a designated ministerial panel tasked with rationalising rates.
The primary objective of the rate rationalisation panel is to simplify the GST structure, rationalise and correct inverted duty structure, and review exemptions. The panel was set up in 2021 under then Karnataka Chief Minister Basavaraj Bommai. The Bommai panel submitted a report in June 2022 proposing changes in GST rates on several goods and services.
The GST Council, in its previous meeting in June, tasked the current rate rationalisation panel to give an overview of the work done on GST rate rationalisation. The draft report is expected to include the status of work, aspects covered by the panel, and work pending.
The panel has been reconstituted twice after Bommai and his Bharatiya Janata Party lost the election in Karnataka in 2023. After the latest reconstitution, Bihar Deputy Chief Minister Samrat Chaudhary has been appointed convenor. The Janata Dal (United)-BJP alliance, which formed a government in Bihar in January, appointed Chaudhary as the state's deputy chief minister and assigned him the finance portfolio.
Other members on the rate rationalisation panel are Kerala Finance Minister K.N. Balagopal, Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, and Rajasthan Medical and Health Services Minister Gajendra Singh. End
Reported by Krity Ambey
Edited by Rajeev Pai
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