GST Rate Rationalisation: Home Minister Amit Shah to Initiate Consensus-Building Talks

Union Home Minister Amit Shah is set to initiate talks with states and Central ministries to build consensus on overhauling the GST structure, particularly eliminating the 12% slab. This move aims to simplify the current five-rate GST system but could result in a revenue loss of ₹70,000–80,000 crore. Shah’s involvement is seen as crucial for resolving politically sensitive issues and securing state support. Past attempts at rationalisation have faced resistance. The GST Council has delayed key decisions, including reducing tax on insurance premiums. A proposal to restructure 148 items is expected in the Council’s next meeting for further deliberation.