GST rate rejig: Item-by-item review of 70-100 products at Goa panel meeting

A panel of state ministers is expected to meet on September 24 and 25 in Goa to review potential changes to Goods and Services Tax (GST) rates, focusing on 70 to 100 items. The Group of Ministers (GoM) will assess feedback received during the 54th GST Council meeting held earlier in September. 

The panel is expected to examine minor adjustments in GST rates across various categories but is unlikely to finalize a broader rationalization of GST slabs at this stage, a source told BT TV.

Bihar Deputy chief minister, Samrat Chaudhary, heads the GoM on rate rationalisation.

The GoM had submitted two status reports to the GST Council on September 9 and will now focus on reviewing item-by-item rates. 

The Fitment Committee, which works under the GST Council, has proposed three new options for a potential three-rate GST structure, which will be reviewed by the GoM. The ministers are expected to submit their report to the 55th GST Council in November.

Currently, the GST system operates under four slabs: 5%, 12%, 18%, and 28%. Essentials are taxed at the lowest rates, while luxury and sin goods fall under the highest bracket, with an additional cess. The panel's review will assess if further adjustments are needed to optimize this structure without adversely impacting mass consumption items.

The GST council in its meeting on September 9 deferred the proposal to exempt life and health insurance from GST. The proposal has been referred to the Group of Ministers on rate rationalisation, which has been expanded to include additional members.

The GoM, in collaboration with the fitment committee, will study the exemption proposal in detail and present its findings to the GST Council in the next session.