BENGALURU: Chief Minister Basavaraja Bommai on Friday chaired, through video conference, a preliminary meeting of the Group of Ministers (GoM) on rationalising GST. It was the first such meeting after Bommai called on Union Finance Minister Nirmala Sitharaman in October first week and discussed in detail about restructuring the slabs and rationalising the tax rates.
The preliminary meeting lasted over three hours. Finance ministers of member states of the GST Council and officials from finance departments of states and the Centre took part. Bommai, who is the convenor of the Group of Ministers, is expected to convene a conclusive meeting next week as the group has to submit its recommendations to the GST Council within two months.
The deliberations were kept confidential, while sources said that no major decisions were taken. The GST Council constituted the GoM on September 24, 2021 to restructure the tax system with Bommai as the chairman of a seven-member committee including the finance ministers from Goa, Kerala, Rajasthan, Bihar, West Bengal and Uttar Pradesh.
The rate rationalisation includes correction of inverted duty structure and reduction of classification-related disputes to enhance GST revenues. Recommendations by the Bommai-headed group will be crucial as they will bring widespread rationalisation in the tax structure.