The Goods and Services Tax or GST Council held their meeting earlier today to discuss various revisions to the indirect tax structure. The meeting, chaired by Finance Minister Nirmala Sitharaman, focused on adjustments that could provide relief to certain sectors amid green shoots of economic revival.
Several items currently in the 28 percent slab are being evaluated for a rate cut in order to lower costs. This includes appliances, electronic devices, and certain steel products. Reducing rates for these items could boost consumer demand and revive investment from the manufacturing industry. Hotel room tariffs above Rs 7,500 are also being considered for a reduction from the existing 28 percent level.
Other sectors seeking a tax cut include auto components in order to support the revival of automobile sales. Concessions are being demanded by those involved in textiles as the segment looks to attract higher domestic consumption and greater exports. Rate rationalization for items like tweezers, paints, and varnishes was also discussed with the intention of benefitting smaller businesses and individuals.
While certain reductions seem imminent, there was no consensus on bringing petrol and diesel under the GST regime. Fuel prices have risen dramatically in recent weeks, adding inflationary pressure on the economy. For now, the Council agreed to retain fuels outside the tax net. Their next meeting will be held on June 28-29 to iron out remaining issues.
