46th GST Council Meeting Dec 31: Members To Discuss Rate Streamlining, Textile Rise | Economy News

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New Delhi: The 46th meeting of the Goods and Services Tax (GST) Council will be chaired by Finance Minister Nirmala Sitharaman on Friday December 31 in Delhi. Members are expected to discuss the report of the panel of state ministers on rate rationalization, the proposed textile GST hike, among others.

Members will meet in person to discuss the correction of the reverse duty on certain goods. The meeting will be a follow-up to the finance minister’s pre-budget meeting with state finance ministers on December 30.

The Group of Ministers (GoM) on tariff rationalization is expected to report to Council. The expert group was tasked with reviewing articles under the reverse duty structure to help minimize refunds.

In addition, the assembly committee made several recommendations to GM regarding panel and rate changes. The committee, which includes state and central tax officials, also recommended removing a few items from the exemption list, PTI reported.

For those who don’t know, the GST is a four-tier slab structure in which products are taxed at 5, 12, 18, and 28 percent. All essentials are either exempt or taxed at 5%, while luxury or incapacity items attract the highest slab at 28%. Some products also attract an additional tax on luxury and demerit products.

Meanwhile, the GST Council is likely to hear the demands for melting the 12 and 18 percent slabs and the demand to remove certain products from the exempt category to improve revenues.

In addition, there was a demand to roll back the proposed rise in textiles from 5 percent to 12 percent. Former West Bengal finance minister Amit Mitra said the hike would shut down around a lakh of textile units and 15 lakh of job losses. Also Read: RBI Reports Omicron Threat To Growth; says banks are strong enough to meet the challenges

Several players and industry groups also opposed the five percent tax increase. They claim that higher compliance costs will make the poor man’s clothes expensive. Also Read: Apple Engineers Receive Surprise Bonuses Up To $ 180,000, Here’s Why

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