GST Overhaul: States Back New Two-Slab Structure
The GoM of state ministers agreed to the Centre's proposal to shift to a two-slab GST structure of 5% and 18%. They also approved removing the 12% and 28% slabs and introducing a 40% tax on ultra-luxury and sin goods. However, concerns about potential revenue loss remain.
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The Group of Ministers (GoM) of state ministers has endorsed the Centre's proposal to transition to a two-slab GST structure, featuring 5% and 18% rates. This significant decision came on Thursday, marking a pivotal adjustment in the nation's GST framework.
Samrat Choudhary, Bihar's Deputy Chief Minister and the convenor of the GoM on rate rationalisation, confirmed the acceptance of eliminating the existing 12% and 28% slabs. Furthermore, the panel agreed on a new 40% tax imposition on ultra-luxury and sin goods, aiming to streamline the tax regime.
Despite this agreement, concerns lingered among state officials, as highlighted by West Bengal Finance Minister Chandrima Bhattacharya. She pointed out the lack of clarity on potential revenue losses for the Centre and states following the implementation of these revised GST slabs.
(With inputs from agencies.)
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