GST Council to Discuss Rate Rationalisation on September 9

The GST Council, led by Finance Minister Nirmala Sitharaman, is scheduled to meet on September 9, 2024, to discuss the rationalization of tax rates and the future of the GST compensation cess. While the council will consider the findings of a committee of officers on rate adjustments, a final decision on any changes will be postponed to a later date. The Group of Ministers (GoM) has indicated a preference for maintaining the current tax slabs of 5%, 12%, 18%, and 28%, despite calls for simplification. Discussions will also include the potential continuation of the compensation cess, which was originally implemented to offset revenue shortfalls for states. The meeting is expected to address various industry concerns, including compliance procedures and tax rules for specific sectors. The government aims to simplify the GST framework without imposing additional taxes on goods.