GoM Led by K’taka CM to Vet GST Rate Rationalization

In a first step towards the restructuring of the goods and services tax (GST) rates, the GST Council has set up a group of ministers (GoM) to review the current regime and recommend measures for a simpler structure.

The GST at present has seven rates – exempt, 0.25%, 3%, 5%, 12%, 18% and 28%, making the regime very complicated.

The GoM shall “review the current rate slab structure of GST, including special rates, and recommend rate rationalization measures, including merger of tax rate slabs, required for a simpler rate structure in GST”, the GST Council Secretariat said in an office memorandum announcing the GoM on Monday. The seven-member GoM would be headed by Karnataka chief minister Basavaraj Bommai.

The GoM has been set up following the last meeting of the GST Council earlier this month in Lucknow.

The GST Council Secretariat on Monday also notified the setting up of another GoM to look at systems reforms required to plug revenue leakages.

The 15th Finance Commission had also recommended GST rate structure revamp its report.

Other member of the GoM looking at the rate structure include Bihar deputy chief minister Tarkishore Prasad, West Bengal finance minister Amit Mitra, Kerala finance minister K N Balagopal, Uttar Pradesh finance minister Suresh Khanna, Goa transport minister Mauvin Godinho, and Rajasthan urban development and housing minister S K Dhariwal.

The panel has been given two months to submit its report of short, medium and long-term recommendations. It may submit an interim report for such immediate measures as it may deem fit.

It would also look at measures needed to eliminate breaking of input tax credit, special rates and rationalization and review inverted duty structure.


The GoM on GST system reforms would identify potential sources of evasion and suggest changes in business processes and IT systems to plug revenue leakage.

The eight-member panel would be headed by Maharashtra deputy chief minister Ajit Pawar, and include Delhi deputy chief minister Manish Sisodia, Tamil Nadu finance minister Palanivel Thiaga Rajan and Chhattisgarh commercial tax minister TS Singh Deo.

The panel would review IT tools and interface available with tax officers and suggest ways to make them more effective, identify potential sources of evasion and suggest changes in business processes and IT systems to plug revenue leakage.

The panel would also identify possible use of data analysis towards better tax compliance and suggest ways of batter coordination between central and state tax officers.

The panel will give its recommendations to the GST Council from time to time, and will review implementation of the recommended changes. S-ET

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