Possible GST Rate Rationalisation Expected in FY25: Interim Budget to Provide Indication

• Rationalisation of rates of GST may be taken up in the coming fiscal year
• The government may give an indication of this in the upcoming Interim Budget
• The Group of Ministers on rate rationalisation of GST was reconstituted in November
• No meeting of the GoM has been scheduled yet
• A fresh member may be required after the Rajasthan assembly elections
• The exercise may be taken up after the General Elections 2024
• An announcement about this could come in the Interim Budget
• Revenue collection from GST has stabilised at over Rs 1.6 lakh crore per month
• Compliance is improving
• The reconstituted GoM includes members from Karnataka, Uttar Pradesh, Goa, Bihar, West Bengal, and Kerala
• The current GST regime has five broad rates and a cess for luxury and demerit goods
• The GoM had submitted an interim report in June 2022 recommending changes in tax rates

Source: a2ztaxcorp.com

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.

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