New Delhi . After the implementation of GST system in July 2017, household items have benefited the most. Before the implementation of GST system, various types of taxes were imposed on these items. But after July 2017, tax on many items was discontinued and tax rates on many were reduced.

According to the data of Central Board of Indirect Taxes and Customs (CBIC), after the implementation of GST system, tax on items like flour, sanitary napkins, honey, curd, buttermilk became zero, while tax rates on items like TV, mobile phone, furniture, Ayurvedic medicine, refrigerator, washing machine, watch, pencil-sharpener decreased.

Efforts to rationalise GST rates from the upcoming meeting

On the other hand, the exercise to rationalize the current GST rates will also begin from the upcoming meeting of the GST Council. Last Saturday, Finance Minister Nirmala Sitharaman said that the next meeting of the GST Council will be held in mid-August this year and the work of rationalizing the GST rates will begin from that meeting. Currently, the Council has formed a committee under the chairmanship of Bihar Deputy Chief Minister Samrat Chaudhary to rationalize the GST rates. Earlier, a committee was formed under the chairmanship of former Karnataka Chief Minister B.S. Bommai to rationalize the inverted duty structure along with GST rates.

There may be a consideration on reducing the GST slab

As part of rationalizing GST rates, the council may consider reducing the GST slabs and it is possible that many items may be taken out of GST. Under the inverted duty structure, different GSTs levied on textile related items like yarn, fabric and garments can be unified. For many other items, GST is different on raw materials and different on finished goods.

Pending issues will also be discussed

Decisions on these issues could not be taken for the last one year due to elections in the states and Lok Sabha elections again. The Finance Minister also said last Saturday that there are many issues before the GST Council which were included in the agenda of the previous meeting but could not be considered. All these pending issues can be decided in the upcoming GST meetings.