GOM Opposes GST Rate Changes; Key Meeting Scheduled for September 9
The GoM convened under the leadership of Bihar Deputy Chief Minister Samrat Chaudhary, was tasked with discussing potential adjustments to GST rates. However, the meeting ended without any definitive decisions. Chaudhary stated that further discussions on the matter would take place in future meetings.
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In a meeting held on Thursday in New Delhi, the Group of Finance Ministers (GoM) from seven states could not reach a consensus on altering the current Goods and Services Tax (GST) rates or slabs. As a result, it has been decided that no changes to GST rates will be considered at the upcoming GST Council meeting scheduled for September 9.
The GoM, convened under the leadership of Bihar Deputy Chief Minister Samrat Chaudhary, was tasked with discussing potential adjustments to GST rates. However, the meeting ended without any definitive decisions. Chaudhary stated that further discussions on the matter would take place in future meetings.
Finance ministers from other states present at the meeting also expressed the view that there is no immediate need to alter the existing GST rates. This sentiment follows the formation of the GoM during the June GST Council meeting, where the group was charged with evaluating the necessity of rate changes. The GoM includes finance ministers from West Bengal, Karnataka, Uttar Pradesh, Kerala, Rajasthan, and Goa.
In the June meeting, Finance Minister Nirmala Sitharaman mentioned that any changes to the GST slabs would be considered based on the GoM's recommendations. Currently, GST rates are set at five levels: 0%, 5%, 12%, 18%, and 28%, with a special 3% rate applied to gold.
Among the issues discussed during the GoM meeting was the possibility of reducing the GST rate on goods currently taxed at 12% to 5%, particularly those widely used by the general public. Additionally, the 18% GST rate on life and health insurance was raised as a point of contention, though no agreement was reached on this issue either.
In a recent parliamentary session, Finance Minister Sitharaman addressed the opposition's concerns about GST on insurance premiums, pointing out that states benefit more than the central government from the revenue generated by this tax, and suggesting that state finance ministers could advocate for its removal if they see fit.
