GST Reassessment
Fin secy says need more consultation with states to rationalise GST rates
This story was originally published at 16:00 IST on 3 February 2025
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NEW DELHI – There is a need to rationalise goods and services tax rates and slabs, Finance Secretary Tuhin Kanta Pandey said Monday. The Group of Ministers given the responsibility of suggesting changes is still working on it and is yet to submit its report.
"Now that we have certain experience in GST implementation, it will be very important to see how things will be going forward. The exercise needed much more consultation with states in the (GST) Council," Pandey said at a post-Budget event organised by the Federation of Indian Chambers of Commerce and Industry.
The six-member Group of Ministers has been asked to recommend trimming the list of items exempt from GST, reassess tax rates, and correct inverted duty structures. The Group of Ministers on rate rationalisation is headed by Bihar's Deputy Chief Minister Samrat Choudhary. Kerala Finance Minister K.N. Balagopal, Uttar Pradesh Finance Minister Suresh Kumar Khanna, Karnataka Revenue Minister Krishna Byre Gowda, West Bengal Finance Minister Chandrima Bhattacharya, and Rajasthan Medical and Health Services Minister Gajendra Singh are the other members.
"Rationalisation is needed. There is recognition that it is needed. But how exactly it will be able to translate and what are the numbers we will be able to arrive at, which are the rates we will be able to arrive at, that further exercise will be done by the Group of Ministers," Pandey said.
Currently, there are four GST slabs at 5%, 12%, 18%, and 28%. Luxury and sin goods are taxed in the highest bracket of 28% along with a compensation cess. End
Reported by Sagar Sen and Krity Ambey
Edited by Rajeev Pai
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