GST fitment panel likely to consider dropping 12% slab

Revamped GST rates may be implemented this financial year

- SHRIMI CHOUDHARY

The fitment committee under the Goods and Services Tax (GST) Council, comprising central and state officials, has begun a rate rationalisation exercise afresh, checking the possibility of dropping some of the rates, particularly the 12 per cent slab, to achieve a revenue-neutral structure, a senior official with direct knowledge of the matter told Business Standard.

The GST regime could see an overhaul in the current financial year (FY25) as it may move to a three-slab structure from the existing four.

The current rate structure comprises standard rates of 5 per cent, 12 per cent, 18 per cent, and the highest rate of 28 per cent. Besides, it has zero and special rates for certain goods and services.

The fitment committee started holding meetings on the issue and preparing inputs towards revamping tax rates and possible implications, which will be submitted to the Group of Ministers set up by the GST Council to suggest changes to the rate structure. The revenue department expects revamped tax rates to be implemented in FY25.