New Delhi: Bihar Deputy Chief Minister Samrat Choudhary has been appointed convener of the group of ministers to rationalise GST rates. According to the GST Council website, the other members of the reconstituted panel are Uttar Pradesh Finance Minister Suresh Khanna, Goa Transport Minister Mauvin Godinho, Rajasthan Medical and Health Services Minister Gajendra Singh.

The GoM also includes Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda and Kerala Finance Minister KN Balagopal.

GoM was established in 2021

The seven-member GoM is tasked with rationalising rates, reviewing the GST exemption list and suggesting reforms in the inverted duty structure. This is the second time the GST rate rationalisation panel has been reconstituted. The GoM was originally set up in September 2021 under the leadership of then Karnataka Chief Minister Basavaraj Bommai. A report prepared under his chairmanship was submitted to the Council in June 2022.

The report proposed changes in rates for some goods and services to rationalise tax rates. After the assembly elections in May last year, the government changed in Karnataka. The panel was reconstituted and Uttar Pradesh Finance Minister Suresh Khanna was made the convener. After the formation of the Janata Dal (United) and BJP alliance government in Bihar in January this year, the finance department was given to Deputy Chief Minister Samrat Choudhary.

At present there are five slabs under GST

Samrat Choudhary replaced Vijay Kumar Choudhary, who was already on the panel. Reconstitution of the GoM on GST rate rationalisation was necessary to include Samrat Choudhary in the panel. Currently, there are five tax slabs (zero, 5, 12, 18 and 28 per cent) under GST. Luxury goods are taxed at the highest rate of 28 per cent and a cess is also levied on them.