Finance Ministry Clears The Air, Says No Feedback Sought From States On Hiking GST Rates

"It is clarified that no feedback from States has been sought on the GST rates for any specific items or specific proposals to restructure the rates...," the finance ministry said.

Representational Image. (Source: Getty Images)

New Delhi: The Finance Ministry said on Monday that no feedback from states has been sought on GST rates for individual commodities or recommendations to restructure the rates, news agency PTI reported.

Following media reports that feedback on a proposal to raise Good and Services Tax (GST) rates on 143 items had been sought from states, the ministry said in a statement that deliberations of the panel of ministers to rationalise GST rates were still ongoing and that the report had not been submitted.

"It is clarified that no feedback from States has been sought on the GST rates for any specific items or specific proposals to restructure the rates...," the finance ministry was quoted by PTI in its report.

It went on to say that the views of the states were solicited broadly on the Terms of References (ToRs) of the Group of Ministers (GoM) immediately after it was established in September 2021.

"A report of the Group is yet to be submitted to the Council for consideration," it added.

The GST Council established a team of state ministers, led by Karnataka Chief Minister Basavaraj Bommai, in September last year to recommend measures to increase income by rationalising tax rates.

According to an earlier report in the Indian Express, the GST council was likely to raise the GST rates on 143 everyday items such as papad, gur (jaggery), power banks, watches, suitcases, handbags, perfumes/deodorants, colour TV sets (under 32 inches), chocolates, chewing gums, walnuts, custard powder, ceramic sinks, goggles, and so on.

(With PTI Inputs)