- Group of Ministers (GoM) on GST discussing merging 12% and 18% tax slabs
- Opposition-ruled states concerned about revenue shortfalls
- Complexity of merging tax slabs acknowledged by experts
- Suggestions to merge 5% and 12% slabs into a single rate
- Political challenges associated with collapsing tax slabs
- Concerns about compensation cess and future of GST structure
- Proposal to exempt health and life insurance premiums from GST
- Discussion on imposing 5% GST on food items and higher rates on luxury goods
- GoM plans to reconvene in October to further assess proposals and revenue implications.
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.
