GST Council meeting meet today, FM & States to discuss rate slabs and hikes

The 46th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, will meet today in-person to discuss issues of rate rationalisation and changes in tax rates for textiles and footwear.

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The meeting will be held in person but to maintain covid protocol the govt has asked each state to send only two representatives. The meeting comes amid demands of several industry bodies and state ministers to roll back a proposed hike in textile from 5 per cent to 12 per cent.

Besides, the Fitment committee, comprising tax officers from states and the Centre, has made many "sweeping" recommendations to the GoM regarding slab and rate changes and taking items out of the exemption list.

Currently, GST is a four-tier slab structure of 5, 12, 18 and 28 per cent.There have been demands for merging the 12 and 18 per cent slabs as also taking out certain items from the exempt category to balance the impact of slab rationalisation on revenue.