In light of the centre’s two-slab reform push, the GST Council called a meeting for September 3–4.
According to an office letter released on Friday, the 56th meeting of the GST Council would take place in New Delhi from September 3 to 4. The conference will take place in the midst of the Centre’s significant campaign to change the indirect taxation regime’s current four slabs into two. The Group of Ministers’ recommendation to keep only the 5% and 18% slabs will be decided by the GST Council, meaning that the 12% and 28% slabs will be eliminated. The GoM also proposed an additional 40% tax on certain categories of luxury and sin items. Sources claim that the GoM decided to do away with the current 12% and 28% slabs under the new system, which is in line with the long-standing objective of streamlining GST through rate rationalisation. “The objective is to move towards a simpler and more transparent GST regime while ensuring revenue protection for both the Centre and states.”
Currently, India has a four-slab GST system: 5%, 12%, 18%, and 28%. There is also an additional tax on luxury and sinful items. Reducing categorisation disputes, streamlining compliance, and increasing overall tax efficiency are the goals of the rationalisation endeavour.
Prime Minister Narendra Modi initially unveiled the GST reform plan in his Independence Day speech. The goal is to have the reform in place by the forthcoming Diwali holiday.
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