In light of recent media reports surrounding the proposed changes in GST rates on various goods and services, it is essential to clarify that these reports are premature and speculative. The information circulating is based on incomplete deliberations and does not reflect any finalized decision by the GST Council.
Role of the Group of Ministers (GoM):
A Group of Ministers (GoM) was constituted to examine GST rate rationalization and address specific issues referred by the GST Council. The GoM includes Hon’ble Ministers from the states of Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka, and Kerala, with the Hon’ble Deputy Chief Minister of Bihar serving as the Convenor. However, it is important to note that the GoM functions as a recommendatory body only.
Decision-Making Authority:
The GST Council, chaired by the Hon’ble Union Finance Minister and comprising Ministers from all States and Union Territories, is the sole authority empowered to recommend and approve GST rates and changes. The GoM’s role is to deliberate and propose suggestions, which are then presented to the GST Council for final consideration and decision.
Current Status:
- The GST Council has not yet deliberated on any GST rate changes.
- The Council has not received the GoM’s final recommendations.
- The GoM is still in the process of finalizing its proposals and has yet to present them to the Council.
Conclusion:
The reports circulating in the media about GST rate changes, particularly the proposed 35% rate on items like tobacco, aerated drinks, and others, are speculative and premature. The final decisions will be made only after the GST Council thoroughly reviews and deliberates on the GoM’s official recommendations.
It is advised to await an official announcement from the GST Council for accurate and reliable information on any proposed changes.
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