Fact Check: Have states been asked for feedback on raising GST on 143 items?

New Delhi, Apr 26: A section of media had reported that the GST Council, the governing body for the indirect tax regime, has sought input from states on raising rates on 143 products as part of a proposed rate rationalisation under the Goods and Services Tax (GST) regime to boost revenues.

It was reported that there was also no proposal to shift more than half of the items to the highest tax GST slab of 28 per cent. These items include papad, gur (jaggery), power banks, watches, suitcases, handbags, perfumes/deodorants, colour TV sets (below 32 inches), chocolates, chewing gums, walnuts, custard powder, non-alcoholic beverages, ceramic sinks, wash basins, goggles, frames for spectacles/goggles, goggles, frames for spectacles/goggles, and leather apparel and clothing accessories.

Reacting to the reports, the Congress had slammed the Centre alleging that the government was acting in a "deceitful, dubious and dissembling" manner with the people, especially the middle class.
"Don't forget these are 92 per cent of a large list of 143 items and these items include jaggery, 'pappad', handbags, suitcases, colour TV sets below 32 inches, walnuts, chewing gum, chocolates and custard powder. I do not see any method in the madness. I don't see any logic and rationale to jump these into the highest categories," Congress leader Abhishek Manu Singhvi said.

Now, the Ministry of Finance has clarified that the Centre has not sought States' feedback on the said issue. "Some reports have even carried the number and description of items. It is clarified that no feedback from States has been sought on the GST rates for any specific items or specific proposals to restructure the rates and the reports regarding the same are purely speculative without any basis in fact," the statement from the ministry said.

The GST Council, in its 45th Meeting had formed a Group of Ministers (GoM) to look into the rationalization of rates. The deliberations of the Group are ongoing. The views of the States were sought generally on the Terms of References (ToRs) of the GoM soon after it was set up in September, 2021. A report of the Group is yet to be submitted to the Council for consideration, it added.
Thus putting an end to the speculations.