New Delhi: GST Council meeting is scheduled to be held today where rationalization of GST rates will be discussed. The meeting will be chaired by Finance Minister Nirmala Sitharaman. While some important points will be discussed in the meeting, the Delhi government has decided to strongly oppose the increased tax on clothes.
Delhi Finance Minister Manish Sisodia will also demand the withdrawal of this increased tax in the meeting.
Sisodia said on Thursday that the increase in tax on clothes will affect the business of small traders and will also put a burden on the budget of the common man. That is why the Kejriwal government will always fight for the rights of small traders and common man.
He said that the textile traders are opposing the increase in the GST rate on textiles from 5 per cent to 12 per cent by the Centre. Sisodia said that the Delhi government under the leadership of Arvind Kejriwal has always been in favor of keeping the tax rates low. Targeting the central government, he said that it has continuously worked to break the back of the people by increasing the tax.
Among other things that will be discussed in this meeting, a report of a committee of state ministers on rationalization of GST rates will also be discussed. Apart from this, in this face-to-face meeting, reforms in the inverted duty structure will also be discussed.
The Group of Ministers (GoM) concerned with the rationalization of rates will submit its report to the Council. The committee has reviewed items under a reversed fee structure to help reduce refund payments. In addition, the fitment committee comprising tax officials from the states and the Center has made several key recommendations to the GoM regarding changes in slabs and rates and exclusion of items from the exemption list. Currently, the GST rates are 5, 12, 18 and 28 per cent.
Simultaneously, cess is also levied on higher slabs on luxury and deprived items. The GST Council will also consider the demand for amalgamation of 12 and 18 per cent slabs and removal of certain items from the exempted category. This will balance the impact on revenue due to recovery of slabs.