- Group of ministers approved reducing GST brackets from four to two main slabs
- Concerns raised about revenue implications and state compensation
- Proposal includes eliminating 12 percent and 28 percent slabs, retaining 5 percent and 18 percent, and adding a 40 percent slab for luxury goods
- GoM members support rate rationalisation but have observations for GST Council discussion
- Final decisions made by GST Council, GoMs are recommendatory
- States willing to agree if it benefits the common man without revenue loss
- Estimated revenue loss could be 85000 crore annually
- Majority of revenue comes from 18 percent and 28 percent slabs
- Government believes demand surge could offset losses
- Uttar Pradesh finance minister supports proposal for common person
- West Bengal finance minister supports but wants to know state revenue losses
- Tax expert says recommendations will simplify structure and boost consumption
- Industry advised to prepare for changes termed GST 2.0
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.
