GoMs set up to rationalise GST rates
Part of: Prelims and GS III – Economy
Context The government has formed Group of Ministers (GoM), led by Karnataka Chief Minister, to rationalise GST rates.
What will be its role?
- The GoM shall review the current tax slab rates and recommend changes in the same as may be needed to garner required resources (and) review the current rate slab structure of GST.
- It shall recommend rationalisation measures, including merger of tax rate slabs, required for a simpler rate structure in GST.
GoM on GST System Reforms
- GoM on GST System Reforms is also formed.
- Maharashtra Deputy CM has been made its convenor.
- It will look at tapping IT tools to minimise tax evasion and make compliance easier for taxpayers.
- This group will subsume two existing ministerial groups on IT challenges and revenue mobilisation owing to the overlap in their mandates.
Do you know?
- Currently, the GST regime has five broad tax rate slabs of zero, 5%, 12%, 18% and 28%, with a cess levied over and above the 28% on some goods, and special rates for items like precious stones and diamonds.