Fact Check: Is govt planning to increase GST on 143 items next month?

New Delhi, Apr 25: The Finance Ministry on Monday clarified that no feedback from states has been sought on the GST rates for any specific items or specific proposals to restructure the rates. The media reports regarding the same are purely speculative without any basis in fact.

"It has been noted that a section of the media has reported that feedback has been sought from States regarding a suggestion for raising Good & Services Tax (GST) rates on 143 items," finance ministry said.

"Of the total 143 items, 92 per cent are proposed to be shifted from the 18 per cent tax slab to the top 28 per cent slab," the media report had said.

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 also in the list. The tax rate of Goggles, frames for spectacles/goggles and apparel and clothing accessories of leather, will also likely to be increased.

"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 ministry added.

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.