GST Ministerial Panels

GST Ministerial Panels

Subject – Economy

Context –Karnataka chief minister Basavaraj Bommai will lead a panel of state ministers to make recommendations to goods and services tax (GST) council on further rationalization of tax rates.

Concept –

• Karnataka chief minister Basavaraj Bommai will lead a panel of state ministers to make recommendations to goods and services tax (GST) council on further rationalization of tax rates, while Maharashtra deputy chief minister Ajit Pawar will lead a ministerial panel on GST system reforms, two official orders showed.
• Bommai’s panel will suggest ways of rationalizing tax rates and correcting tax anomalies to simplify the tax structure, reduce disputes relating to classification of goods and services and boost revenue collection of central and state governments.
• This panel will “review the supply of goods and services exempt under GST” to expand the tax base and eliminate breaking the input tax credit chain.
• The second panel will identify potential sources of tax evasion and suggest changes in business processes and IT systems to plug tax leakage. It will also suggest ways of better coordination between central and state tax administration.