GST Council accepts interim report of GoM on rate rationalisation, sources say

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India’s GST Council has accepted the interim report by a group of ministers (GoM) that was formed to look into the rationalisation of rates under the indirect tax system, sources said on June 28.

All the recommendations of the GoM were accepted, they said.

The GST Council met today in Chandigarh and the meeting will conclude tomorrow.

The GoM, chaired by Karnataka Chief Minister BS Bommai, was tasked with looking into matters related to rate rationalisation and correction of the inverted duty structure.

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CNBC-TV18 has reported, citing unnamed sources, that the GoM has recommended correction of inverted duty structure on printing, writing/drawing ink; LED lights, fixtures, lamps; solar water heaters; finished and composition leather; works contracts supplied to government; and tailoring and other job works for textiles. Rates for all these are being hiked, the report stated.

Moreover, the GoM is also said to have recommended the withdrawal of exemptions for reinsurance of some insurance schemes; transportation of newspapers, rail equipment by rail and road; and services by the Reserve Bank of India and the capital markets and insurance regulators.