Page 2 - Gst Rates

GST rationalisation: GoM backs Centre's proposal to end 12%, 28% tax rates

The Group of Ministers on Thursday accepted the Central government's plan to replace current GST rates of 12% and 18% for most items with a much-lower 5% and 18% slabs, as well as a steep 40% levy on

GoM on rate rationalisation meets to discuss Centre's GST rate cut proposal

A crucial meeting of the GoM of state finance ministers on GST rate rationalisation began on Thursday as they started deliberation on the Centre's proposal to reduce tax slabs to 5 and 18 per cent. The 6-member Group of Ministers (GoM) on rate rationalisation is chaired by Bihar Deputy Chief Minister Samrat Choudhary. The other members are Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda and Kerala Finance Minister K N Balagopal. The Centre has proposed reforms in GST by reducing the number of slabs under Goods and Services Tax (GST) to 2 (5 and 18 per cent) from 4 (5, 12, 18, and 28 per cent). "The rate rationalisation will provide greater relief to the common man, farmers, the middle class and MSMEs, while ensuring a simplified, transparent and growth-oriented tax regime," Finance Minister Nirmala Sitharaman had told the Group of Minister

New GST plan by Diwali: What is a GoM, how it works, and why it matters

Explainer: What the GST Council's GoM on rate rationalisation is, how it works, who its members are, and how its decisions could shape India's two-slab GST plan by Diwali 2025

GST rate rejig: Tractors, ACs may emerge as key beneficiaries, says Nomura

Nomura said scrapping the 12 per cent GST slab could bring major tax relief for tractors and ACs, boosting demand and pricing.

Haryana CM asks Centre for GST exemption on 10 agricultural implements

Haryana Chief Minister Nayab Singh Saini has sought from the Centre an exemption in GST on ten agricultural implements used in crop residue management. He has written a letter in this regard to Union Finance Minister Nirmala Sitharaman and Union Agriculture Minister Shivraj Singh Chouhan. In his letter, Saini highlighted that farmers of Haryana play a crucial role in the nation's food reserves, with the state being a leader in the agricultural sector. However, in recent years, stubble burning has become a major issue, adversely impacting the health of the people, an official statement quoted him as saying in the letter. Given the seriousness of the issue, it is being closely monitored by the Supreme Court and the Air Quality Commission, it said. The chief minister said that Haryana's farmers are adopting advanced technologies and utilizing the latest agricultural implement for crop residue management. Over the past few years, both Government of India and the state government have

New IIP series may use GST data, be seasonally adjusted: MoSPI Secy

Besides, the new IIP series will be chain-based, as the annual survey of industries (ASI) data is available to adjust the weights of different industries

FHRAI urges govt to delink food and beverage GST rates from room tariffs

The Federation of Hotel & Restaurant Associations of India (FHRAI) on Sunday pitched for delinking the GST on food & beverage services from accommodation charges in hotels. Citing multiple representations made to the authorities, FHRAI emphasized that the current practice of linking F&B taxation to hotel room tariffs is both unfair and operationally challenging for the hospitality industry. Under the prevailing GST framework, restaurants within hotels charging Rs 7,500 or more per room per day are subject to 18 per cent GST on F&B services with input tax credit (ITC) benefits, while those in hotels with tariffs below this threshold must levy 5 per cent GST without ITC. FHRAI has proposed a flexible system allowing all hotel restaurants to independently opt for either 18 per cent GST with ITC or 5 per cent without ITC, irrespective of the room rates. "With regard to our request of delinking this particular GST which is the threshold of Rs 7,500 which is there today, as .

GST Council issues clarification on proposal of taxation on popcorn

GST Council on Saturday agreed to issue a clarification on taxation of popcorn, saying that pre-packed and labelled ready-to-eat snacks will attract a 12 per cent tax while an 18 per cent GST will be levied if it is caramelised. There is no change in the tax rate of popcorn and the GST Council has only agreed that the Central Board of Indirect Taxes and Customs (CBIC) will issue a circular clarifying the current taxation regime of popcorn. "Ready-to-eat popcorn", which is mixed with salt and spices, and has the essential character of namkeens currently attracts a 5 per cent GST if it is not pre-packaged and labelled. If it is supplied as pre-packaged and labelled, a 12 per cent GST is levied. However, when popcorn is mixed with sugar (caramel popcorn), its essential character changes to that of a sugar confectionary, and would therefore be classifiable under HS 1704 90 90 and attract an 18 per cent GST, as per the clarification.

GST on health insurance needs to be reduced: IFFCO Tokio's Subrata Mondal

Mondal discussed the future plan of the companies along with the emerging challenges for the sector

Panels on GST rationalisation, cutting tax on insurance to meet on Oct 19

The two ministerial panels set up by the GST Council are slated to meet on October 19 to discuss GST rate rationalisation and lowering 18 per cent tax rate on health and life insurance premiums. This would be the first meeting of the 13-member GoM, under Bihar Deputy Chief Minister Samrat Choudhary, which was set up to suggest tax on health and life insurance premiums. The panel, which includes ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, Kerala, Andhra Pradesh, Goa, Gujarat, Meghalaya, Punjab, Tamil Nadu and Telangana, has been mandated to submit its report to the GST Council by October end. Currently an 18 per cent GST is levied on health and life insurance premiums and the GoM would be suggesting tax rate of health/medical insurance including individual, group, family floater and other medical insurance for various categories like senior citizens, middle class, and persons with mental illness. It would also suggest tax rates on life insurance, including term

GoM on rate rationalisation to meet 1st time ahead of GST council meeting

Ahead of the GST Council meeting on September 9, the Group of Ministers (GoM) on GST rate rationalisation will meet here on Thursday, officials said. This will be the first meeting of the high profile GoM comprising ministers of seven states with Bihar Deputy Chief Minister Samrat Chaudhary as the convenor. The other members of the panel are West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, Kerala Finance Minister K N Balagopal, Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, Rajasthan Medical, and Health Services Minister Gajendra Singh. "The GoM will meet today to take stock of the progress and the future course of action," an official said. The GST Council, in its previous meeting in June, had tasked the GoM to give a broad overview of the work done or a draft report on GST rate rationalisation. It would include the status of the work and aspects covered by the panel so far and work pend

GST notices to foreign airlines could hurt India's aviation potential: IATA

The DGGI has sent show cause notices to airlines such as Emirates, Singapore Airlines, Lufthansa, British Airways, Oman Air and five others

Panel on rejigging GST rates due for another revamp, to meet before Budget

Council likely to meet by end of this month or first week of July

Ice cream topping crackle likely to attract 18 per cent GST on AAR ruling

Court held crackle is not intended for direct consumption by users but as an industrial input

Top headlines: Haldiram family to invest Rs 2,500 cr, Jio wages price war

Business Standard brings you the top headlines at this hour

Panel working on classification of millet products to determine GST rates

The panel will likely propose the classification at the next GST Council meeting, which is expected to be held at the end of May or in June

GST Council okays setting up tribunals, specific levy for pan masala firms

GST Council also decided to clear the entire dues of GST compensation pending to states

Liquidity slips into deficit; RBI cash injections at over one-month high

Tax outflows drive tightness; banks face pressure to raise deposit rates

Decriminalise GST law, cut personal income tax rates in Budget: CII to govt

Industry body CII has pitched for a reduction in personal income tax rates, decriminalisation of the goods and services tax and a relook at the capital gains tax rates as part of its agenda presented to the government for the forthcoming Budget. Arguing that the GST law already contains adequate penal provisions for deterrence against evasion of taxes, CII has suggested decriminalisation of GST law. Also, the applicability of prosecution provisions should not be based on the absolute amount of tax evasion but should be based on real intent to evade the taxes and a certain percentage of the tax payable, it stated. "A fresh look is needed at the capital gains tax with respect to its rates and holding period to remove complexities and inconsistencies. Moreover, the Government should contemplate a reduction in the rates of personal income tax in its next push for reform as this would increase disposable incomes and revive the demand cycle," CII President Sanjiv Bajaj said. Tax certaint

CBIC offers clarity on classification of cranes for GST, customs duty

Experts say this would reduce litigation in courts, as different classes of cranes attract different tax rates