1. GST rate overhaul: GoM to propose revisions for 150 items, report on Dec 21

GST Rate Rationalisation by GoM

• The Group of Ministers (GoM) is expected to recommend a rejig on 150 goods and services, including textiles, to the GST Council.
• The GoM is also likely to suggest a new slab of 35% for tobacco and tobacco-related products, against the current rate of 28%.
• The GoM agreed on several GST rate changes to simplify the GST framework and enhance revenue collection.
• The report is expected to be placed before the 55th GST Council on December 21.
• The GoM has suggested lowering rates for textiles, bicycles, exercise books, and luxury items.
• The GST rate structure for textiles applies a 5% tax on items priced up to ₹1,000 and a 12% tax on those priced above ₹1,000.
• The GoM has also proposed raising GST rates on luxury items, including high-end wristwatches and shoes.