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“Please don’t indulge in speculation on rate rationalisation as no decision has been taken. GST council appreciates GoM views on why decision on rate rationalisation takes more time. Speculation creates a lot of worry and uncertainty,” Sitharaman said.
Earlier, Bihar Deputy Chief Minister Samrat Chaudhary and GST rate rationalisation’s convenor said, “Will submit the Group of Ministers (GoM) report on rate rationalisation in next meeting of the Council.”
The GoM had earlier this month arrived at a broad consensus to rejig tax rates on about 148 items, including levying a higher 35% tax on sin goods, like aerated beverages and tobacco products, as compared to 28% at present. It was widely expected that the GoM would submit its report to the GST Council meeting on Saturday.
Currently, GST is a four-tier tax structure with slabs at 5, 12, 18 and 28%. Luxury and demerit goods are taxed at the highest bracket of 28%, while packed food and essential items are at the lowest 5% slab.
The GoM had also decided to propose rationalising tax rates on apparel. As per the decision, ready-made garments costing up to ₹1,500 would attract 5% GST, and those between ₹1,500 to ₹10,000 would attract 18%. Garments costing above ₹10,000 would attract a 28% tax.
