GST Overhaul: Slab Reduction Talks Intensify

The Group of Ministers on GST rate rationalisation is evaluating the Centre's proposal to streamline tax slabs by reducing them to 5% and 18%. Chaired by Bihar Deputy CM Samrat Choudhary, this reform aims to simplify the tax regime, benefiting the middle class, farmers, and MSMEs.

A pivotal meeting of the Group of Ministers (GoM) on GST rate rationalisation commenced on Thursday, with discussions focusing on the Centre's proposal to simplify tax slabs to 5% and 18%.

Chaired by Bihar Deputy Chief Minister Samrat Choudhary, the six-member team includes state finance ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka, and Kerala. The discussions aim to reform GST by eliminating the current four-slab structure.

The proposed reclassification seeks to benefit the middle class, farmers, and MSMEs by introducing a more transparent and growth-oriented tax regime. The meeting also explored 'merit' and 'standard' classifications, while discussing the impact of a potential GST exemption on health and life insurance policies.

(With inputs from agencies.)