Ministers Appointed for Rationalisation of GST in India
Two groups of ministers have been appointed to look into the rate rationalization under the GST, which will also include the current tax slab structure.
The GST council secretariat on Monday 27th of Sept 2021 notified the setting up of two GoM, one to look into the reforms of the system required to plug revenue leakages. The other GoM will monitor the rate structure. The GST Council had earlier announced this month to set up the two GoMs in its meeting.
"... review the current tax slab rates and recommend changes in the same as may be needed to garner required resources," the office memorandum said.
The 15th Finance Commission, in its report, also recommended the GST rate structure revamp its vital. The present GST slabs are into seven different labels. In fact, if we go practically, it's Eight, As Exempt and 'Zero' rated are two different concepts altogether. The current slabs are– exempt, 0.25%, 3%, 5%, 12%, 18% and 28%.
Karnataka chief minister Basavaraj Bommai will head the seven-member panel, looking to rate structure, and will include the following members:
1. West Bengal finance minister Amit Mitra.
2. Kerala finance minister K N Balagopal.
3. Bihar deputy chief minister Tarkishore Prasad.
4. Uttar Pradesh finance minister Suresh Khanna.
5. Goa transport minister Mauvin Godinho and
6. Rajasthan urban development and housing minister S K Dhariwal.
The GoM panel may submit an interim report for such immediate measures as it may deem fit. But the final report has to be submitted within two months for short, medium and long term recommendations.
It is also asked to look at measures needed to eliminate breaking of the input tax credit & its related bogus entry, and business model, special rates, and rationalization are the vital aspects of this committee and review the inverted duty structure.
Focus to Plug Revenue Leakage.
Effective system reforms would identify potential sources of evasion and suggest changes in business processes and IT systems to plug revenue leakage.
Headed by Maharashtra deputy chief minister Ajit Pawar, the eight-member panel would include the following persons:
- Delhi deputy chief minister Manish Sisodia.
- Tamil Nadu finance minister Palanivel Thiaga Rajan.
- Chhattisgarh commercial tax minister TS Singh Deo.
The panel would review some important IT tools and interface to make them available with tax officers and suggest more effective ways of using them, identify potential sources of evasion and recommend changes in business processes and IT systems to plug revenue leakage.
The panel would also identify the possible use of data analysis towards better tax compliance and suggest better coordination between central and state tax officers.
The panel will give its recommendations to the Council from time to time and review the recommended changes' implementation. GST Network will provide the necessary secretarial support to the GoM.
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