- Three Groups of Ministers will meet on August 20 and 21 to discuss GST framework changes.
- Recommendations will be presented to the GST Council for approval by Diwali.
- Panels focus on rate rationalisation, insurance, and compensation cess.
- Proposed changes remove 12 percent and 28 percent slabs, keeping 5 percent and 18 percent rates.
- Some products will move from 12 percent to 5 percent or 18 percent.
- The highest GST rate remains at 40 percent for select products.
- Officials expect a consumption boost post-rationalisation to offset revenue loss.
- Rationalisation aims to protect the poor, farmers, middle class, and MSMEs.
- US tariffs on Indian exports are coincidental to GST changes.
- The Department of Revenue will present proposals to the GoMs.
- This is the first Centre-led GST recasting to accelerate reforms.
- States’ agreement is crucial; some concerns about state revenue impact.
- The GST Council, with 33 members, will make the final decision.
- Recasting is expected to boost economic activity.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
