The Finance Ministry has set up two committees of state finance ministers which will rework rate slabs, review GST exempt items and also identify potential evasion sources.
The seven-member panel, which will be headed by the Karnataka Chief Minister Basavaraj Bommai and includes West Bengal Finance Minister Amit Mitra, Kerala Finance Minister K N Balagopal, and others would review the supply of the goods and services exempt under GST with an objective to expand the tax base and eliminate breaking of the ITC chain.
The committee will also review the current tax slab rates and recommend changes in the same as well.
The Group of Ministers (GoM) on rate rationalisation would also review items under the inverted duty structure to help minimise refund payout, and review the supply of goods and services exempt under GST with an objective in order to expand the tax base and eliminate breaking of the input tax credit (ITC) chain.
The Finance Ministry also said that the GoM may suggest changes that may be implemented immediately and the roadmap for the implementation of changes will be in the short to longer term. The panel can also submit interim report for immediate recommendations as well.