A ministerial panel on Goods and Services Tax (GST) rate rationalisation is set to convene on September 25 in Goa, where it will likely discuss possible adjustments to tax slabs and rates, PTI reported.

"The meeting of the GoM on rate rationalisation is scheduled for September 25 in Goa," an official told PTI, as quoted by PTI.

The six-member Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, last met on August 22. Following that meeting, the panel submitted a status report to the GST Council on September 9.

At the August meeting, the GoM directed the fitment committee—comprising tax officials from both the Centre and states—to assess the impact of potential tax rate changes on specific items and to collect additional data.

The current GST system in India operates under a four-tier structure, with tax rates of 5%, 12%, 18%, and 28%. Essential goods are either exempt from GST or taxed at the lowest rate, while luxury and demerit goods attract the highest tax slab of 28%, along with an additional cess.

There have been discussions about merging the 12% and 18% tax slabs, but no formal proposals have been made to date.

One reason for these talks is that the average GST rate has dropped to around 12%, significantly lower than the revenue-neutral rate of 15.3%. This decline has fueled the debate over the need for rate rationalisation.

Some states, including West Bengal and Karnataka, have expressed reservations about altering the current GST structure.

What other minister said? 

West Bengal Finance Minister Chandrima Bhattacharya, after the August meeting, stated, "I have said there should be no changes in the GST slab."

Karnataka Revenue Minister Krishna Byre Gowda echoed similar sentiments, emphasising the need to evaluate the implications of any changes. "What do you achieve by disturbing it? We said in the next meeting we will discuss it (reducing slabs)," Byre Gowda remarked.

Apart from Chaudhary, the GoM also includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, and Kerala Finance Minister K N Balagopal.