Key GST GoMs Likely To Be Reshuffled

The Goods and Services Tax Council will have to appoint a new chairperson for the key group of ministers (GoM) on rate rationalisation following the Karnataka state elections. Former Karnataka chief minister Basavaraj S Bommai, who resigned following the BJP’s rout in the assembly elections, was the convenor of the GoM on GST rate rationalisation.
The GoM was set up in September 2021 to review the rate structure of the indirect tax levy including the correction of inverted duty structure with the objective to simplify rates, reduce classification related disputes and enhance revenue.
The seven-member GoM had submitted an interim report on rate rationalisation in June 2022 for correcting the inverted duty structure of a number of items but its larger task of reviewing the rate structure for GST is still pending. Government sources have indicated that an overhaul of the GST structure is unlikely until the 2024 General Elections.
Typically, a minister from the same state is inducted into the GoM when a member steps down. However, with a Congress government to assume power in the state, it is unclear whether this would be the case. When West Bengal finance minister Amit Mitra, who was also a member of the GoM, stepped down, he was replaced by his colleague in the state cabinet, Chandrima Bhattacharya, who is minister for state for urban development and municipal affairs.
Besides the chairperson, another member to the GoM would also have to be appointed in place of former Bihar deputy chief minister Tarkishore Prasad who stepped down in August 2022. Sources said that there has been no move to appoint his replacement on the GoM till now.
“As of now, no meeting of the GoM on rate restructuring is planned. A new chairperson may be appointed once the new government in Karnataka is sworn in. It is still early days,” said an official source, adding that a replacement for Prasad is also awaited.
Other members of the GoM include Kerala finance minister KN Balagopal, Goa minister for transport and Panchayati Raj Mauvin Godinho, Rajasthan minister for local self government, urban development and housing Shanti Kumar Dhariwal and Uttar Pradesh finance minister Suresh Kumar Khanna.
Meanwhile, with the Cabinet reshuffle in Tamil Nadu, two other GoMs of the GST Council – related to system reforms and another on casinos, race courses and online gaming, will have to be reconstituted with a new member. Until now, Palanivel Thiaga Rajan, the former finance minister and current IT minister of Tamil Nadu, was a member of these two GoMs. However, he is likely to be replaced by the new finance minister Thangam Thennarasu.
The official source said that as of now, there has been no communication regarding any changes to these GoMs.