The 56th Goods and Services Tax (GST ) Council Meeting is expected to be conducted soon. According to reports, the GST Council, chaired by the Union Finance Minister and comprising state counterparts, may discuss the removal of 12 per cent tax slab. This will reduce the number of tax slabs from four to three. According to the report, the 12 per cent tax slab does not hold much relevance now. The officials and experts advising the Group of Ministers (GoM) on rate rationalisation are reportedly on the same page that the existing slab is not very relevant, and the items under it could be shifted to either the 5 per cent or the 18 per cent tax slab.
“This could be the most plausible way to undertake a revenue-neutral tax rate rationalisation exercise. However, the GST Council has to take a final call,” the report quoted a person aware of the development.
| Goods Under 12% Slab | |
| Processed and Packaged Foods | Butter, ghee, cheese, fruit juices, jams, jellies and namkeens |
| Dried and Preserved Fruits | Almonds, dates and dried fruits |
| Beverages | Fruit juice-based drinks and packed coconut water |
| Household Items | Umbrellas, specific household utensils and furniture made of wood |
| Stationery and Accessories | Pencils, crayons, handbags, and shopping bags made of jute or cotton |
| Footwear | Below Rs 1,000 |
| Diagnostic Kits | Various medical diagnostic kits |
| Construction Materials | Marble and granite blocks |
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