The final report from the GST Group of Ministers (GoM) on rate rationalisation suggests drastic adjustments to the tax rates on 148 products, including a major revamp for the textile industry. The rate adjustments will increase income, and they will probably be covered at the next meeting of the GST Council on 21st December.
In a revamped slab structure, the GoM has proposed an 18 per cent tax on goods priced between Rs. 1,500 and Rs. 10,000, while maintaining the 5 per cent rate for textile items up to Rs. 1,500. The research suggests raising the percentage to 28 per cent for textiles costing more than Rs. 10,000 in order to bring them into line with luxury items.
Currently, textiles are subject to a 5 per cent tax on goods under Rs. 1,000 and a 12 per cent tax on those beyond Rs. 1,000 under the GST rate structure.
At its 2nd December meeting, the GoM, which was presided over by Bihar Deputy Chief Minister Samrat Chaudhary, decided on a number of GST rate adjustments aimed at streamlining the GST system and improving revenue collection. The report will be delivered at the 55th GST Council meeting, which Finance Minister Nirmala Sitharaman is chairing and is due for 21st December in Jaisalmer.
