Sitharaman to attend GoM meeting on Aug 20, explain next-gen GST reforms

New Delhi, Aug 18: Finance Minister Nirmala Sitharaman will attend a crucial meeting of a state ministerial panel on August 20 to put forth the Centre’s proposal for sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.

The two-day meeting of the Group of Ministers (GoM) on GST rate rationalisation is scheduled on August 20-21 here, sources said.

The meet will deliberate on the Centre’s proposal for GST reforms of reducing the number of tax slabs in Goods and Services Tax (GST) to two -- 5 and 18 per cent, and a 40 per cent special rate on a select few items.

Sources said apart from the rate rationalisation panel, the two-day meeting would be attended by members from GoMs on compensation cess and also health and life insurance.

“The idea is to put forth the Centre’s view point behind the GST reform proposal. Although the Centre is not a member of the GoM, Union Finance Minister’s presence and her address will give the GoM a better understanding of the idea and thought process behind the Centre’s proposal,” a source told PTI.

The GST reforms proposed by the Centre come against the backdrop of the levy period of GST compensation cess nearing an end and also the impending rate rationalisation to deal with the industry problem of duty inversion in various sectors. Also, a rate tweak in both health and life insurance premiums were being worked out by a GoM to give relief to the common man.

The GST Council had earlier set up three separate GoMs on the three issues.