A meeting of the panel of state finance ministers looking into GST rate rationalisation has been postponed, sources said.
The Group of Ministers GoM on rate rationalization, headed by Karnataka Chief Minister Basavaraj Bommai, also includes West Bengal Finance Minister Amit Mitra, Kerala Finance Minister K N Balagopal and Bihar Deputy Chief Minister Tarkishore Prasad.
It has met twice so far, and was scheduled to meet on November 27 to discuss recommendations of the Fitment committee on GST rate and slab changes.
Sources said the meeting was postponed and the GoM would submit its report to the GST Council, chaired by the union finance minister and comprising state counterparts.
The Council, which meets once a quarter, is scheduled to meet next month.
Sources had earlier said that the Fitment committee, consisting tax officers from states and the Centre, has made many sweeping recommendations regarding slab and rate changes and taking items out of the exemption list. The recommendations may not be accepted in toto, according to the sources.
The GoM has looked at items under an inverted duty structure to help minimise refund payments over its last two meetings.
GST has a four-tier slab structure of 5, 12, 18 and 28 per cent. Essential items are either exempted or taxed at the lowest slab, while luxury and demerit items attract the highest tax rate. A cess is levied on luxury and demerit goods on the top of the highest slab.
There have been demands for merging the 12 and 18 per cent slab, as well as taking out certain items from the exempt category to balance the impact of slab rationalisation on revenue.
The GST Council has corrected the rate anomaly in the case of mobile phones, footwear and textiles, due to the inverted duty structure.