GST Rate Hike News: After heavy criticism on social media regarding the recommendations of the Group of Ministers formed by the GST Council to increase the GST rate on 148 items including clothes, watches, cigarettes, tobacco, cold drinks, the Central Government came on the backfoot. Is. The Central Board of Excise Customs (CBIC), which comes under the Ministry of Finance, has termed the news of increasing the GST rate on these items as a rumour.
CBIC said GOM report not received
CBIC (Central Board of Indirect Taxes & Customs) said that there has been no discussion yet in the GST Council regarding the change in GST rate and it has also not received the recommendations of the Group of Ministers. Even the Group of Ministers has not yet prepared its report and submitted it to the Council for consideration. In such a situation, the news coming in the media about increasing the GST rate is premature and a rumour.
According to CBIC, the GST Council had constituted a Group of Ministers to rationalize the GST rate, which includes ministers from Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala and the Deputy Chief Minister of Bihar is its chairman. The GST Council is chaired by the Honorable Finance Minister and includes the Finance Ministers of all the States and Union Territories and the Council is authorized to make changes in the GST rates. The Group of Ministers can only submit its recommendations. According to CBIC, the GST Council has not yet considered the change in GST rate. The Council has not yet received the recommendations of the GOM.
There are various reports in the media regarding the Group of Ministers (GoM) recommendations on GST rate changes regarding various goods and services. The reports in public media on the basis of GoM deliberations are premature and speculative.
A Group of Ministers (GoM) was…
— CBIC (@cbic_india) December 3, 2024
Finance Minister said – do not speculate
CBIC went to social media platform X and completely rejected the news of increase in GST rate. So Finance Minister Nirmala Sitharaman, while thanking CBIC for this important and timely refutation of these news, wrote on the social media platform, Finance Ministers of different states included in the Group of Ministers are considering changes in the GST rate. Are. After this, the GST Council, consisting of finance ministers of all states, will consider their recommendations in its next meeting. Giving advice, the Finance Minister said, it is better to avoid speculations.
Important and timely. Thank you @cbic_india,
Finance Ministers from various states in the GoM are working to address GST rate changes. Thereafter, the GST Council, consisting of all state FMs will take up their recommendations, when they next meet. Speculation is better avoided. https://t.co/nC6VPrjATD— Nirmala Sitharaman (@nsitharaman) December 3, 2024
Effort to rationalize GST rate
The GST Council had formed a Group of Ministers under the chairmanship of Bihar Deputy Chief Minister Samrat Chaudhary to rationalize the rates. It was reported that after mutual consent, the Group of Ministers has proposed to increase the GST rate on cigarettes, tobacco and related products along with aerated beverages (cold drinks) to 35 percent, which is currently 28 percent.
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