The Karnataka Chief Minister Basavaraj Bommai-led Group of Ministers (GoM), which was established last year by the GST Council to propose ways to increase revenues by rationalizing tax rates and correcting tax structure anomalies, is likely to meet on June 17. The panel of ministers is likely to discuss a proposal to shift tariff plates from the current five percent to seven or eight percent; and from 18 percent to 20 percent, sources told CNBC-TV18.
The GoM, given the time to submit its final report before the next GST Council meeting, could also discuss removing the list of exempt items under the GST regime. The panel of state ministers may also discuss the proposal to correct the reverse tax structure in textiles, the sources said.
A reverse tax structure refers to a situation where the tax rate on inputs purchased is higher than that on finished goods.
The GoM member states include Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Goa and Kerala. The panel last met in November 2021. The GoM’s recommendations, once finalized, will be submitted to the Council for a final decision at its next meeting. The GST Council, the highest decision-making body under the GST regime, is likely to meet in the last week of June.
Currently there are four GST plates: 5 percent, 12 percent, 18 percent and 28 percent. The 18 percent record has 480 items, about 70 percent of which come from the GST collections. In addition, there is an exempt list of items such as unbranded and unpackaged food that are not subject to the levy.
GST Collections reached Rs 1,40,885 crore in May, up 44 percent year on year. However, it was a 16 percent drop compared to April’s GST collections. The gross GST revenue collected in May 2022 was Rs 1,40,885 crore, of which CGST is Rs 25,036 crore, SGST Rs 32,001 crore, IGST Rs 73,345 crore (including Rs 37469 crore collected on importation of goods) and cess is Rs 10,502 crore (including Rs 931 crore collected on importation of goods).
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