46th GST Council meet on December 31: FM Nirmala Sitharaman likely to take big decisions

The 46th Goods and Service Tax (GST) Council meet will be chaired by Finance Minister Nirmala Sitharaman on Friday, December 31, in Delhi. The GST council members are expected to discuss GST rate rationalization among other things.  

The Group of Ministers (GoM) will submit its report on GST rates. The meeting will be an extension to the pre-budget meeting of the Finance Minister with state finance ministers on December 30.

At present, there are four slabs in GST rates, 5 per cent, 12 per cent, 18 per cent and 28 per cent. The required items are either in the lowest slab or there is no tax on them. Luxury and demerit items are in the highest slab, which also attracts cess. 

There are demands to make one slab by combining 12 per cent and 18 per cent slabs of GST. 

A decision will be taken to stop the increased rates on footwear and textiles for now. Many states are opposing the increase in GST on textiles from 5 per cent to 12 per cent. After considering this proposal again, the council will bring a new proposal.

GST rates applicable on some items might be revised. Items under panel inverted duty structure have also been reviewed to reduce refunds. The fitment committee of tax officers of the Center and the states have suggested changes in the GST rates to the Group of Ministers.