A seven-member committee is going to set up with group of ministers as per the order of Government in order to rationalize tax rates and merging of various tax slabs in upcoming months.

In recently held GST council meeting in Hariyana, Finance Minister Nirmala Sitharaman stated that Government has tasked to set up two GoM for rationalization of tax rates for raising revenues.

First group will be of seven-member group constituted by Finance ministers of Kerala and West Bengal and other GST council members. Chief Minister of Karnataka, Basavaraj S. Bommai is appointed as the head of the panel to make changes and correct anomalies.

There are five tax rate slabs such as zero, 5%, 12%, 18% and 28% in GST regime. She said that GST is deteriorated to 11.6% from original revenue neutral rate of 15.5% due to various tax subventions given by the Government since the launch of GST in July 2017.

Therefore, the group is asked to suggest solutions and changes in the current GST rate structure to further implement the changes as soon as possible. Government will review the original GST structure and ask to make changes and suggestions if required to ease out the tax rate structure.

Another seven-member committee of GoM headed by Maharashtra deputy CM Ajit Pawar will work on reforms in GST systems by introducing IT tool to reduce tax evasion so that it will be easy for taxpayers. This GoM constituted of Ministers of Odisha, Chattisgarh, Assam and Andra Pradesh and Deputy CMs of Delhi and Hariyana and Finance minister of Tamilnadu.

By Ulhas