GST Council to discuss dropping 12% tax slab to rationalise rates: Report

The final call on rate rationalisation will be taken by the GST Council

India may soon move to a three-rate goods and services tax structure by removing the 12 percent slab in an effort to rationalize the tax arrangement, a report by the Hindustan Times said on June 5.

The proposal is likely to be discussed at the GST Council’s next meeting, the newspaper reported citing sources.

The experts and officials advising the Group of Ministers for rate rationalization have “near consensus” that the 12 percent slab has no relevance anymore. The goods used by the common people could be taxed at a lower rate of 5 percent and all the other goods could be moved to 18 percent, HT said.

The is likely to be a revenue neutral tax rationalization move and the most ‘plausible’ way to bring reforms to the GST structure, the report said.

However, the final call will be taken by GST Council, the paper said.

The GST Council, which has not met since December 2024, will likely discuss the issue of rate rationalization and other steps to ease compliance. The Council is poised to meet in June-end or in July, according to the report.

Earlier in May, Moneycontrol had reported that The the Council is expected to deliberate on rate rationalisation, cess, and procedural simplification in its upcoming meeting, according to government sources.