On 31st December Finance Minister Nirmala Sitharaman chaired the 46th GST Council Meet and will likely discuss the report on rate rationalisation, proposed GST hike in textile and among other things. It is an extension to the pre-budget meeting of FM Sitharaman with State Finance Ministers on 30th December.
The Group of Ministers (GoM) were tasked to review items under an inverted duty structure to help minimize refund payout, will submit a report to the Council. The Fitment committee has made many “sweeping” recommendations to the GoM regarding slab and rate changes and taking items out of the exemption list. Currently, GST is a four-tier slab structure of 5, 12, 18 and 28 per cent. Essential items are either exempted or taxed at the lowest slab, while luxury items attract the highest slab. On the top of the highest slab, a cess is levied on luxury goods.
West Bengal’s former Finance Minister Amit Mitra has urged the Union Finance Minister to hike in textile which leads to closure of one lakh textile units and 15 lakh job losses. Telangana Industries Minister KT Rama Rao has also urged the Centre to withdraw its proposed plan to increase GST rates.