A panel of state ministers, established by the Goods and Services Tax (GST) Council, is set to convene in Goa on September 24 and 25. This six-member group, led by Bihar Deputy Chief Minister Samrat Chaudhary, will review the implications of rate rationalization on at least 100 items. The discussions aim to analyze potential changes in GST slabs and rates, particularly focusing on essential goods.

During the two-day meeting, the panel will explore various aspects of the current tax structure, including the possibility of merging existing slabs and correcting the inverted duty structure. The ministerial panel includes prominent figures such as Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, and Kerala Finance Minister K N Balagopal. A prior meeting on August 22 yielded a status report that was presented to the Council on September 9.

One of the key focuses of the upcoming meeting will be to reassess current rates and slabs, especially in sectors like textiles, fertilizers, and handloom, which require in-depth analysis. The Fitment Panel, comprising revenue officials from both the Centre and States, has submitted three rate structure options for consideration. These proposals suggest tax slabs of 7%, 14%, and 21%; 8%, 16%, and 24%; and 9%, 18%, and 27%, all designed to avoid adverse impacts on prices of mass consumption items.

Currently, the GST system operates on a four-tier tax structure with rates set at 5%, 12%, 18%, and 28%. Essential goods typically fall under the lowest tax bracket or are fully exempt, while luxury and sin goods are taxed at the highest rate. Additionally, a separate Group of Ministers (GoM) focused on real estate is expected to meet during the same period, discussing potential GST exemptions for industrial land and cooperative societies.

This crucial meeting could pave the way for significant changes in the GST framework, impacting both consumers and industries across the country.