New Delhi: In what might be the GST repair precursor, the Ministry of Finance has formed a group of ministers (GOM) which will review current plates, including merges, and also suggest steps to expand the base after examining the goods and services that are currently on under the excluded category.
The seven member panel, which will be chaired by the Head of the Karnataka Minister Basavaraj Bommai, has been asked to suggest measures that can be implemented immediately and those who can be launched in the medium to long term.
Some suggestions will also handle reverse task structures in several product segments, where retribution on the final product is lower than finished goods.
The decision to regulate two GOMS – with the second on the tool and data analysis – was taken at the GST board meeting last week in Lucknow.
During interaction with the media, Minister of Finance Nirmala Sitharaman has pointed to the need to change the rate structure, given the average GST estimated 11.5% of the weighted average rate of around 15%, when the new tax regime was kicked in five years ago.
FM, however, said the GOM mandate was to see the upside down structure, but the Ministry of Finance’s notification suggested a much wider remit.
This center has been interested in reworking slabs and internally discusses the possibility of transferring 5% slab up, while moving goods facing 12% and 18% retribution at a unified 16-17% level.
The proposal, however, found a little support when the GST board met at the beginning of 2020 and the discussion was postponed after the Covid outbreak.
But with compensation for countries that will expire after June, the center can use a window to deliver a lot of delayed restructuring, while also ensuring an expanded base.
Personally, officials stated that the current framework became complicated to be given and may not produce enough collection of income collections.
The second GOM, which must be led by Deputy Minister of Maharashtra Ajit Pawar, will see how to make a stronger IT system.