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The CBIC on Tuesday said the GoM on GST rate rationalisation is yet to submit its recommendations to the GST Council, which is the final decision making body in fixation of tax rates.
It said the GST Council is empowered to recommend GST rates including changes to them. (Representative image)
The CBIC on Tuesday said the GoM on GST rate rationalisation is yet to submit its recommendations to the GST Council, which is the final decision making body in fixation of tax rates.
In a post on X, the Central Board of Indirect Taxes and Customs (CBIC) said the GST Council, chaired by Union Finance Minister and comprising state counterparts, has not yet deliberated on any GST rate changes and the group of ministers (GoM) is only a “recommendatory” body.
There are various reports in the media regarding the Group of Ministers (GoM) recommendations on GST rate changes regarding various goods and services. The reports in public media on the basis of GoM deliberations are premature and speculative.A Group of Ministers (GoM) was…
— CBIC (@cbic_india) December 3, 2024
The clarification from CBIC came a day after reports that the GoM on GST rate rationalisation has suggested tax rate on sin goods like aerated beverages, cigarettes, tobacco and related products be hiked to 35 per cent, from the current 28 per cent.
“The GST Council has not yet deliberated on any GST rate changes. The Council has not even received the recommendations of the GoM. In fact the GoM has yet to finalise and present its recommendations to the Council after which the Council will take a final view on the recommendations of the GoM,” the CBIC said.
It said the GST Council is empowered to recommend GST rates including changes to them.
Finance Minister Nirmala Sitharaman in a post on X said Finance Ministers from various states in the GoM are working to address GST rate changes.
“Thereafter, the GST Council, consisting of all state FMs will take up their recommendations, when they next meet,” Sitharaman said.
The GST Council had constituted a Group of Ministers (GoM) to look into the GST rate rationalisation apart from certain other issues referred by the GST Council.
The GoM comprises ministers from the states of Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala, with the deputy chief minister of Bihar as the Convenor.
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)