The Group of Ministers (GoM) on GST rate rationalisation is likely to submit its final report by February, Karnataka Chief Minister Basavaraj Bommai, who heads it said..
The Chief Minister said this while replying to a debate on the supplementary estimates worth Rs 3,577 crore that was passed in the Karnataka Legislative Assembly today.
"I have held two meetings of the GoM so far, there are opposition states also, and I’m happy to say that I’ve been able to take everybody along – CPI, Congress, BJP and others. We’ve been successful in bringing everybody on the same platform, as everybody works for public interest," Bommai said.
He also said that he expects the revenues to go up after the rates are rationalized.At present, there are four slabs – 5, 12, 18 and 28- under the GST.
Noting that he is in the middle of multiple challenges, Bommai, who also holds Finance portfolio said, "there’s the post-Covid recovery that we need to focus on, then there’s the threat of a new wave, the GST compensation regime is ending and our expenditure is rising. I’m in the middle of all this," he said, adding that he wants to focus on solutions.
He said the state has achieved 67 per cent of the target own-tax revenue collection by the end of November. "The achievement is 71 per cent in commercial taxes, 68 per cent in excise, 66 per cent in stamps and registration and 54 per cent in motor vehicles tax."
"Even during Covid-19, we haven’t fallen behind revenue collection." "There are goods that have a higher tax potential. For example, on arecanut, we got Rs 8 crore excess GST in just one week. Similarly, there are products that have been neglected and we are concentrating on them," he added.