The Group of Ministers (GoM) on GST rate rationalisation, which convened in Goa on Wednesday, reviewed GST rates for over 100 items, including textiles, handloom goods, agricultural products, fertilisers, and educational materials. However, no consensus was reached, and discussions will continue next month in Delhi.
Chandrima Bhattacharya - West Bengal Finance Minister, highlighted the proposal to maintain the 5% GST on ready-made garments priced below ₹1,000 while increasing the rate from 12% to 18% for garments above ₹1,000. Bhattacharya argued against the increase, citing the impact on the thriving garment market.
In addition to textiles, the GoM also debated reducing GST on essential items like educational materials, with general agreement on avoiding rate hikes that would affect common people. The discussion on GST rates for health insurance premiums was deferred to the October 19 meeting in Delhi.
The GoM’s final recommendations will play a crucial role in shaping the agenda for the 55th GST Council meeting in November, where key issues like rate rationalisation and potential GST exemptions on life and health insurance premiums will be addressed.
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