The ministerial panel on GST rate rationalisation on Thursday broadly converged towards retaining a 4-tier slab structure and asked the committee of tax officers to analyse the implication of tinkering rates on some items and present it before the GST council.
The issue of GST on health and life insurance was also raised by some states in the meeting of the Group of Ministers (GoM) on rate rationalisation and referred to the fitment committee, comprising central and state tax officers, for further data analysis.
The suggestions of the GoM will be taken up on the September 9 meeting of the GST Council headed by Union Finance Minister Nirmala Sitharaman and comprising state counterparts.
Talking to reporters after the first meeting of the GoM under his convenorship, Bihar Deputy Chief Minister Samrat Chaudhary said, “Some GoM members are demanding that there should be no change in tax slabs under GSTâ€.
“More discussions will happen, and then only a final decision will be taken,†Chaudhary said, adding the GoM has received representations from restaurants, beverages and online gaming sectors, which will be reviewed and some of them will be sent to the Fitment committee.
West Bengal Finance Minister Chandrima Bhattacharya stated, “I have said there should be no changes in the GST slab. A presentation will be made before the Councilâ€.
The next GoM meeting will be held after the September 9 Council meeting, she added.
Asked if the GoM deliberated on reducing 4 slabs to 3, Bhattacharya said, “That will not happen for now. Slabs will be retained at 5, 12, 18, and 28 per cent. This will be reviewed by the Council nowâ€.
Asked if there was discussion on tinkering with slabs, Karnataka Revenue Minister Krishna Byre Gowda said that Goods and Services Tax (GST) has broadly stabilised.
“So why disturb it.. What do you achieve by disturbing it? We said in the next meeting that we will discuss it (reducing slabs),†she added.
On health and life insurance taxation, Byre Gowda said, “We have asked for further report (from fitment committee). We are not sure if it’s part of the agendaâ€.
The Opposition has been demanding the removal of GST on health and life insurance premiums, which attract an 18 per cent rate.
Sitharaman had earlier this month said that tax was levied on insurance premiums even before the imposition of GST, and GST revenues are shared between the Centre and states.
Gowda said the GoM had asked for a break up of changes in tax rates on some items. “What will be the implication of tax rates going up or down on those items,†he said.
