The proposed Goods and Services Tax (GST) rate rationalisation by the Group of Ministers (GoM) has received a mixed response from states, with several expressing apprehensions about the timing and potential impact of the changes.
According to sources, some non-GoM member states have voiced concerns about the proposed rate changes, citing unfavourable economic conditions. They argue that the economic environment should be carefully considered and suggested delaying the changes until there is a noticeable pickup in consumption.
Despite their reservations, states appear to be open to the rationalisation of GST rates on life and health insurance premiums. They believe this could be an essential first step before a comprehensive overhaul of the GST structure is undertaken.
The 55th GST Council meeting, scheduled to take place on December 21 in Jaisalmer, will provide a platform for detailed discussions on the proposed reforms. The GoM on rate rationalisation is expected to present its report during this meeting.
Additionally, a separate GoM focused on life and health insurance will also submit its findings for deliberation.
Source from: https://www.cnbctv18.com/economy/gst-rate-rationalisation-proposal-states-express-concerns-19522766.htm
