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NEW DELHI: The GoM on goods and service tax rate rationalisation, convened on Wednesday has discussed tax rate tweaks for over 100 items, including lowering taxes on certain goods from 12 to 5 per cent, West Bengal Finance Minister Chandrima Bhattacharya said on Thursday.
The next meeting of the GoM is scheduled on October 20, Bhattacharya said, adding that rationalising taxes on bicycles and bottled water will be part of the discussion.
The six-member Group of Ministers (GoM), also took up the issue of tax rate cut on medical and pharma-related items in the 12 per cent slab and decided to discuss it in its meeting next month. They have also discussed the possibility of raising tax rates on some items, including aerated water and beverages, from the current 28 per cent GST, plus cess.
Currently, goods and services tax (GST) has a four-tier tax structure with slabs at 5, 12, 18, and 28 per cent. However, as per GST law, tax of up to 40 per cent can be imposed on goods and services.
West Bengal has suggested that the decision taken at the 23rd meeting of the GST Council in which tax rates were slashed on 178 items by pruning the 28 per cent slab should be revisited.
This would help to garner more revenues while at the same time give relief to common man by bringing items down to 5 per cent," Bhattacharya told PTI.
The GoM would discuss the views of its members in the meeting scheduled to be held on October 20 and place its recommendations before the GST Council, chaired by the Union Finance Minister and comprises ministers from all states and UTs.
The six-member GoM also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K N Balagopal.
Under GST, essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest slab.
Luxury and sin goods attract cess on top of the highest 28 per cent slab. Whereas, average GST rate has fallen below the revenue neutral rate of 15.3 per cent.