GST Council meet on Sep 9 may discuss rate rejig: FM Nirmala Sitharaman

A “short discussion on rate rationalisation” of Goods and Service Tax (GST) is likely to happen among ministers in the council, Union Finance Minister Nirmala Sitharaman has said, reiterating the fact that Modi 3.0 accords importance to a structural revamp of the all-inclusive indirect tax.

The GST Council meets once a quarter, and the 54th GST Council meeting is scheduled to take place on September 9 this year. The process to restructure slabs of the tax could be initiated then. A committee is slated to present an update on GST rates and revenue at the meeting.

Bihar deputy chief minister Samrat Choudhary leads a reconstituted Group of Ministers who are scheduled to make a presentation before the 54th GST Council on the current status and the plan of action ahead as far as the restructuring of GST is concerned.

“A short discussion on rate rationalisation may happen among ministers of the Council,” Sitharaman said.

There are four rate slabs of GST right now. These are 5 per cent, 12 per cent, 18 per cent, and 28 per cent. The Group of Ministers could look into bringing down the number of slabs to three. For this, the Group would consider if goods that are alike should have the same GST rate.

The meeting of the 54th GST Council is also scheduled to hold discussion on the GST Compensation Cess, and figure out its blueprint for the future.

An official decision on changes in GST rates would take time, and happen only after Choudhary and the Group of Ministers have readied their final suggestions.