The Group of Ministers (GoM) formed to correct the GST rates did not present its report to the GST Council on Saturday. In this report, there was a proposal to amend the tax rates on 148 items. Samrat Chaudhary, convenor of the committee and Deputy Chief Minister of Bihar, said that this report will now be presented in the next meeting of the council.
“There has been extensive discussion on suggestions to rationalize the Goods and Services Tax (GST) rates. The report will be presented in the next council meeting.”
Proposal to change tax rates on 148 items
The GoM this month had prepared a proposal to revise GST rates on 148 items.
Major changes suggested:
- Harmful beverages and tobacco products:
- Suggestion to impose tax up to 35% instead of present 28% tax.
- Clothing and Fashion Products:
- New rates on clothes:
- 5% GST on clothing up to ₹1,500.
- 18% GST on garments priced between ₹1,500 and ₹10,000.
- 28% GST on clothes costing more than ₹10,000.
- New rates on shoes:
- GST on shoes priced above ₹15,000 increased from 18% to 28%.
- New rates on wrist watches:
- GST on watches priced above ₹25,000 increased from 18% to 28%.
- New rates on clothes:
Current GST Structure
At present GST is based on a four-tier tax structure:
- 5%: Essential commodities and canned foods.
- 12% and 18%: General goods.
- 28%: Luxury and luxury goods.
Goods expected to be taxed at lower rates
GOM has also given suggestions to reduce tax rates on some items.
Major Offers:
- Packaged Drinking Water:
- GST on containers above 20 liters reduced from 18% to 5%.
- Bicycles:
- GST on bicycles priced below ₹10,000 reduced from 12% to 5%.
- Copy and stationery:
- GST on copies reduced from 12% to 5%.
next steps
- The report will be presented in the next meeting of the GST Council.
- A final decision will be taken on the proposed amendments.
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