No Pending GoM Report on GST Rates: Finance Ministry Clarifies

Post

🔍 No Pending GoM Report on GST Rates: Finance Ministry Clarifies

The GoM report on GST rate rationalisation is not pending for review before the GST Council, according to the Finance Ministry’s recent statement on December 9. This clarification comes amidst widespread speculation regarding possible GST rate cuts or hikes.

📢 What Was Clarified in Parliament?

Minister of State for Finance, Pankaj Chaudhary, addressed the Lok Sabha, stating that the Group of Ministers (GoM) tasked with rate rationalisation has not submitted its report for the GST Council’s consideration. The GST Council, which met on September 17, 2021, created the GoM to propose reforms in GST rates to streamline the current structure.

📰 CBIC’s Clarification on Media Reports

The Central Board of Indirect Taxes and Customs (CBIC) also clarified through an X (formerly Twitter) post that the GoM functions as a recommendatory body, and the GST Council has the final say. The post dispelled misinformation surrounding possible rate hikes on items like:

• Sin Goods (aerated beverages, cigarettes, tobacco products)
• Reports speculated these rates could rise from 28% to 35%

However, the CBIC stated that the GST Council has not yet deliberated on any such changes.

📅 Next GST Council Meeting: December 21

The GST Council, led by Union Finance Minister and state finance ministers, is scheduled to convene on December 21. No formal GoM recommendations on rate rationalisation will be on the agenda for this meeting.

💡 Key Takeaways

1. No GoM Report Pending: The GoM on rate rationalisation hasn’t submitted its report.
2. CBIC Clarifies: The GST Council makes final decisions, not the GoM.
3. Rate Hike Speculation: No current plans to raise GST rates on sin goods.
4. Upcoming Meeting: GST Council meets on December 21 for regular deliberations.

✅ Summary Checklist