Two committees formed to make a list of items exempted from GST

The committees will include the finance ministers of the states

These committees will review the merging of different rates of GST and work to find sources of tax evasion.

New Delhi: The Union Finance Ministry has convened two committees comprising finance ministers of different states to examine the possibility of exemption from Goods and Services Tax (GST) and whether different rates of GST can be merged. Formed.

After four years of implementation of GST, which has replaced the highly confusing indirect tax structure, the Central Government and the State Governments have started moving towards simplification and simplification of the existing tax structure by reviewing whether the existing slabs of different rates can be merged with each other. .

The Group of Ministers, formed to rationalize the different rates, will review which goods and services can be exempted from GST and also review the various items coming under the inverted tax structure to reduce the refund amount of traders.

The government's intention in simplifying the tax structure by conducting such a review is to further expand the tax base and to eradicate the scandalous practice of taking input tax credit.

The seven-member committee, which will submit its report to the GST Council in the next two months, will be chaired by Karnataka Chief Minister Basavaraj Bommai and other members will include West Bengal Finance Minister Amit Mitra and Kerala Finance Minister K.N. Balagopal, Bihar Deputy Chief Minister Tarakishore Prasad.

It may be mentioned that under the existing GST structure, four slabs of tax are in force, with a slab of 28 per cent on luxury goods ranging from five per cent on essentials and a slab between 12 and 18 per cent. In addition, cess has been levied on the purchase of luxury goods.