The Central Board of Indirect Taxes & Customs (CBIC) has clarified that recent media reports on the Group of Ministers (GoM) recommendations on GST rate changes regarding various goods and services are “premature” and “speculative”.

Several media reports claimed that the Group of Ministers on GST rate rationalisation proposed a new tax slab of 35% for tobacco and related products and aerated beverages. Currently, all these 'sin' goods come under the 28% tax slab.

A Group of Ministers (GoM) was constituted to look into the GST rate rationalisation apart from certain other issues referred by the GST Council. The GoM comprises of ministers from the states of Bihar, Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala with the deputy chief minister of Bihar as the convenor, says the CBIC.

It is the GST Council chaired by the Union Finance Minister and including ministers of all the states and Union Territories, which is empowered to recommend GST rates including changes to them, the tax authority says, adding that the GoM is only a recommendatory body.

“The GST Council has not yet deliberated on any GST rate changes. The Council has not even received the recommendations of the GoM. In fact the GoM has yet to finalise and present its recommendations to the Council after which the Council will take a final view on the recommendations of the GoM,” it says.

“Finance Ministers from various states in the GoM are working to address GST rate changes. Thereafter, the GST Council, consisting of all state FMs will take up their recommendations, when they next meet. Speculation is better avoided,” Finance Minister Nirmala Sitharaman says in a post on X.

The 55th GST Council meeting will be held on December 21, 2024. Taxpayers are expecting relief on the GST rates on health and life insurance premium.

Gross GST collections grew 8.5% to over ₹1.82 lakh crore in November on higher revenues from domestic transactions. Central GST collection stood at ₹34,141 crore, State GST at ₹43,047 crore, Integrated IGST at ₹91,828 crore and cess at ₹13,253 crore, according to government data released on Sunday. The total gross Goods and Services Tax (GST) revenue grew 8.5% to over ₹1.82 lakh crore in November as compared to ₹1.68 lakh crore in the same month a year ago.