Group of Ministers (GoM) Proposes GST Rate Modifications on October 19, 2024

Current Context: On October 19, 2024, the Group of Ministers (GoM) on GST rate rationalisation convened to propose modifications to the GST rates.

• Chaired by Bihar Deputy Chief Minister Samrat Chaudhary, the GoM discussed potential changes to the GST structure to balance revenue while offering relief on essential items.
• Key Proposals:
• Reduction in GST Rates: GST on 20-litre packaged drinking water bottles, bicycles (costing less than ₹10,000), and exercise notebooks was proposed to be reduced from 18% to 5%.
• Increase in GST Rates: GST on high-end shoes (above ₹15,000) and wrist watches (above ₹25,000) was proposed to be increased from 18% to 28%.
• Revenue Impact: These changes are expected to generate an additional revenue of ₹22,000 crore.
• Other Items: Discussions included potential tax rate changes for over 100 items, aiming to provide relief to the common man by lowering taxes on certain goods from 12% to 5%, while some items in the 18% slab might be moved back to the 28% bracket.

Question:

1 Who chaired the Group of Ministers (GoM) on GST rate rationalisation that convened on October 19, 2024?

• A) Nirmala Sitharaman
• B) Samrat Chaudhary
• C) Amit Shah
• D) Piyush Goyal

Answer: B) Bihar Deputy Chief Minister Samrat Chaudhary chaired the meeting to discuss potential changes in GST rates to balance revenue and provide relief on essential items.