The Group of Ministers (GoM), led by the Karnataka Chief minister on Goods and Services Tax (GST) rate rationalization, will meet on 17th June 2022 to examine various options for tax rate changes and revenue augmentation.
This committee meeting will examine the current macroeconomic context and the need for tax rate and slab optimization. Sources say committee members will decide at the meeting when they could present the final report to the Council.
A sharp increase in the GST rate is unlikely soon amid the spike in inflation and the Reserve Bank of India (RBI) raising its benchmark policy rate. Also, policymakers are not sure of a tax rate increase on frequent-use items at this time when consumption recovery is seen to be still fragile.
High energy prices and supply disruptions due to geopolitical factors have been flaring inflation, prompting the government to rework import duty to control the prices. However, state governments are looking for ways to augment their revenue receipts as the GST compensation is coming to an end this month.
An increase in GST rates on some items, withdrawal of specific exemptions, and correcting tax anomalies become essential in this context. The panel includes Bihar’s deputy chief minister, Kerala finance minister, and representatives from Goa, West Bengal, Uttar Pradesh, and Rajasthan.
The ministerial panel’s agenda is to simplify the rate structure, correct the inverted duty structure, reduce classification-related disputes, and enhance GST revenues.
For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@clear.in
DVSR Anjaneyulu known as AJ, is a Chartered Accountant by profession. Loves to listening to music & spending time with family and friends.
The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…
The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…
Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…
Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…
A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…
Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…