The meeting will be held virtually, said a person familiar with the discussions in the committee. The committee will look at the current macroeconomic context as well as the imperative for tax rate and slab optimisation but no decision is taken yet on the proposals at this juncture. At the meeting, committee members will take a call on when the final report could be presented to the GST Council, the person quoted above said. 

Given the spike in retail and wholesale inflation and the fact that the Reserve Bank of India (RBI) is raising its benchmark policy rate to tame the rise in cost of living, a sharp increase in GST rate is unlikely in the near term. Also, policy makers are not sure of a tax rate increase on mass use items at this juncture when consumption recovery is seen to be still fragile. High energy prices and supply disruptions due to geopolitical factors have been fanning inflation, prompting the government to rework import duty to cool prices. However, with the GST compensation to states coming to an end this month, state governments are looking for ways to augment their revenue receipts. An increase in GST rates on some items, withdrawal of certain exemptions and correcting tax anomalies become important in this context. 

The panel includes Bihar deputy chief minister Tarkishore Prasad, Kerala finance minister K.N. Balagopal and representatives from West Bengal, Goa, Rajasthan and Uttar Pradesh. 

The ministerial panel's mandate is to focus on simplifying rate structure, correcting inverted duty structure, reduce classification related disputes and enhance GST revenues.