- Central and state government officials are discussing rationalizing the Goods and Services Tax
- A three-tier rate structure is being considered, with options of 8%, 16%, and 24% or 9%, 18%, and 27%
- Abatement of goods of basic necessity and differential treatment for sin goods like cigarettes is included
- A new six-member Group of Ministers (GoM) on rate rationalization has been formed
- The GoM is expected to hold its first meeting soon, ahead of the 54th GST Council gathering in August
- CBIC Chairman mentioned the need to match GST rates with commodities and consider special rates for special commodities
- The GoM will present a status report in the next GST Council meeting for discussions on rationalization.
Source: a2ztaxcorp.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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