The GoM will meet on September 25, 2024. They will be meeting to discuss key changes to the GST Structure. The meeting focuses on rationalizing GST rates by adjusting the current tax slabs, a move aimed at simplifying compliance and improving revenue collection.
Proposed Changes to GST Slabs
The GoM, led by Bihar Deputy Chief Minister Samrat Chaudhary, is considering the possibility of merging the 12% and 18% GST slabs. Merging the two tax slabs can streamline the taxation system and thus make it easier to manage compliance for businesses. The main reason behind this is that the average GST Rate has fallen below the revenue-neutral level of 15.3% thus raising concerns about the sustainability of the existing framework.
Fitment Committee’s Role in GST Rationalization
In August 2024, the GoM instructed the fitment committee to assess the financial implications of changing the GST Rate Slabs. Their findings will be reviewed on September 25th’s GoM meeting. It is important for GoM to understand the effect of changing GST slabs in different industries.
State-Level Opposition to Changes
Some states have raised questions and concerns regarding changing the GST Slabs. This includes west Bengal and Karnataka.
Impact on GST Registration and Return Filing
Businesses undergoing GST Registration or GST Return Filing must stay updated about such changes. If the GST Tax Slab changes are implemented in 2024, the companies will need to modify their tax compliance procedure to stay compliant. The changes to GST Rates can either reduce the complexity of GST Return Filing for businesses or increase the burden on businesses depending on the meeting’s outcomes. In short, the September 25th GoM meeting will be crucial for businesses as well as the future of GST Compliance.
Moreover, If you want any other guidance relating to GST Registration please feel free to talk to our business advisors at 8881-069-069.
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