• Notification Date: 25-09-2024
• Notification No: N/A

GST Rate Review: Goa Committee to assess 70-100 items separately

The Committee of State Ministers is scheduled to meet in Goa on September 24 and 25 to consider possible changes in the Goods and Services Tax (GST), with a focus on 70-100 GST items. The Group of Ministers is scheduled to evaluate the feedback received during the 54th GST Council meeting in early September.  

The committee is expected to consider minor adjustments in GST rates across categories but is unlikely to decide on a broad-based rationalization of GST tiers at this stage, sources told BT TV.  

The Fittings Committee of the Goods and Services Tax (GST) Council has suggested three new options for a possible three-rate GST structure, which will be assessed by the Group of Ministers. The GOM and state government are expected to consider feedback from the 54th GST Council meeting to be held in early September. 

Sources suggest that the committee may consider minor adjustments in GST rates for various categories but will not decide on any major restructuring of GST tiers at this stage. Bihar Deputy Chief Minister Samrat Chaudhary is leading the Bihar government's efforts in rationalizing the tax rates. The GOM and Bihar governments have already submitted two status reports to the GST Council on September 9 and will now focus on reviewing the tax rates on an item-by-item basis.  

The current GST framework has four slabs—5%, 12%, 18%, and 28%—with essentials attracting the lowest tax rate and luxury items attracting the highest tax rate (including additional tax). The panel's review will determine whether further adjustments are needed to optimize the structure without adversely affecting key assets.  

At its meeting on September 9, the Goods and Services Tax (GST) Council postponed the proposal to exempt life and health insurance from GST. The proposal was sent to the GOM for rate rationalization, which will thoroughly consider it and acquiesce the findings to the GST Council at its next meeting.  

The review of GST rates on 70-100 GST items by the GOM is a strategic move to fine-tune the GST rates without overhauling the entire structure. Businesses should stay alert for the changes, especially when dealing with GST items under scrutiny.  

Managing GST rate changes can be complicated, especially with the GOM reviewing up to 100 products. Tax Seva Kendra offers specialized tax advisory services to help businesses understand and adapt to the evolving Goods and Services Tax regulations. Our team of experts ensures compliance, minimizes tax liability, and keeps you updated on important changes. Stay one step ahead with Tax Seva Ken, your tax strategy and compliance partner.