A group comprising ministers from states is yet to finalise a report on rationalisation of Goods and Services Tax (GST) rates and a decision will be taken in due course, according to a PTI report.
The Group of Ministers (GoM) will deliberate and finalise recommendations which will be sent to the GST Council, headed by Finance Minister Nirmala Sitharaman and comprising state finance ministers. No view on rate rationalisation has yet been taken by the GoM, PTI reported quoting sources.
GST RATE LIST
- Currently, GST has four-tier tax slabs. The slabs are 5 per cent, 12 per cent, 18 per cent, and 18 per cent.
- However, a three per cent tax is levied on gold and gold jewellery.
- Essential items are taxed at the lowest slab of five per cent.
- Luxury items come under the highest tax bracket of 28 per cent.
- Along with 28 per cent, a cess is levied on luxury items.
There were reports that the slab of 5 per cent may be broken into 3 per cent and 8 per cent, and the remaining slabs of 12, 18 and 28 per cent would continue.
But no view on rate rationalisation has yet been taken by the GoM, let alone the GST Council. The call on tinkering the rates is a political decision and the same will weigh when the GST Council takes a view on it, the PTI report said.