The Commodity and Services Tax Council may meet in August after the seasonal parliament session

The GST Board of Tax and Services (GST) will meet in late August after the seasonal wind session of Parliament ends.

According to the sources, there is now a consensus close to removing the commodity and services rate plate by 12 %, but the final decision must be taken by the council.

The sources near the development said: “There have been many discussions on rationalizing prices and the Ministry of Finance is still holding talks with stakeholders. There is now a 90 % agreement to get rid of an average of 12 %.”

However, the final invitation lies with the council and some states have concerns about possible revenue losses. The sources indicated that there are also political consultations at a high level to make the parties on board.

According to accounts, there are very few elements in a 12 % plate. Thinking is that most common use elements will be transferred to a 5 % board, while the most expensive elements and brands can be transferred to an average of 18 %.

A group of items such as butter, ghee, processed foods, mobile phones and umbrellas currently attract 12 % of the commodity and services tax.

The sources pointed out that “it will be a marginal difference in taxes and can also be absorbed by manufacturers,” adding that this can give strength to consumption as well, which may lead to high sales and then higher tax revenues.

“Despite the discounts in the income tax, tax groups have already increased,” they indicated.

Granting the input tax credit for these elements will continue even if they move to an average of 5 %.

Meanwhile, discussions are also taking place on the future of CESS compensation that is scheduled to end on March 31, 2026. CESS is likely to continue, but in a different form, it is likely to be imposed on sin commodities such as alcohol.

Nowadays, at the commodity and services tax, the structure of five prices of 0 %, 5 %, 12 %, 18 %, 28 % and CESS on sin and high -end materials.

With the completion of GST until eight years so far, there has been an invitation to rationalize tax rates under indirect tax tax.

The seasonal parliament session is scheduled to start on July 21 and will be postponed on August 21. The states will also get their assembly sessions, and it is often difficult to find a suitable time for the council during these periods. The Commodity and Services Tax Council met in December 2024 in Jaisalmar, which is now likely to hold its meeting in New Delhi.