Group of Ministers Pushes for Major GST Reform with 5%, 18%, and 40%Rate Structure – CNBC tv18

A High-Powered Group of Ministers (GOM) on GST Rate Rate Rationalization Has Recommended A Two-Slab Structure with 5% and 18% Rates and A Special Rates and A Special Rates of 40%, A Move Seen as the first step towards. The recommendations will now be placed before the GST Council for Discussion and Final Approval.

While the proposal has found broad consensus on the need to simplife the current rate structure, several stations have raised concerns over the potential revenue losss that may arise to have to bring. States have asked the center to provide an estimation of revealed loss and a roadmap on how such losses will be commented.

Samrat Choudhary, Deputy Chief Minister of Bihar and Convenor of the GOM on Rate Rationalization, Said The Committee Had Reacted Consensus on the Center’s Proposals.

“The proposal of center to remove the two slabs that we have discusced and we have accepted and given recommendations.

Echoing Simlar Support, Suresh Khanna, Finance Minister of Uttar Pradesh, Stressed The Pro-Peeple Aspect of the Exercise.

“Center’s proposal was welcomed by all members say it is in the interest of common man. Ultra-luxury Goods and Sin Goods will Attract 40%. Some states Demand That States Be Companated for Revenes. Revenue Loss will be called. Ultra-Luxury Cars will be subject to 40%, ”Khanna added.

However, not all stations are fully convined. West Bengal Finance Minister Chandra Bhattacharya underlined the need to weight

“We have said we are okay with pro-people rates rates rationalization. Know, they have not quantified the loss. Have said, “She explained.

Bhattacharya further cauned that ignoring state finance

“All states are pro-love. But when the states lose their revelation, Maintened and any lower rate than the current insurance is not permissible, ”She said.

She also pointed to legal changes that may be required to accept the new structure.

Section 9 (1) Needs an amendment along with 40% tax, a special schedule may be made and amendment be brought in the act. It is a full additional duty on the goodness Levied. Now if it merges with GST, GST is 40%, “She Added.

On Insurance, Bhattacharya Urged The Center to ENSURE That Reform Does Not End Up Burdening Househlds.

“We have suggested center should see that insuction individuals should not be taxed. States have concurred to the suggestions. Boils Down to Sufferance of Common Man. “

The GST Council is expected to take up the recommendations in its upcoming meeting. While the Simplified Three-Slab Structure is Seen as a Step towards making Discussions.