The Group of Ministers (GoM) meeting on rate rationalisation on Wednesday in Goa has agreed to reduce the Goods and Services (GST) rate on education-related material, including exercise books and pencils, from 12% to 5%. This was confirmed by Finance Minister of West Bengal Chandrima Bhattacharya. However, the decision will be announced later. This change is expected to provide much-needed financial relief to families and make educational resources more accessible.
In an interaction with The New Indian Express, Bhattacharya stated, “We all agreed that the rate on education-related material should be brought down. This is a step towards ensuring that education remains affordable for every child.”
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However, the meeting also discussed a proposed increase in the tax rate on apparel priced above Rs 1,000 from 12% to 18%. Bhattacharya voiced strong opposition to this proposal, arguing that it would adversely impact common citizens and the textile industry, which employs many women in West Bengal.
“The increase in tax rate will affect common people and the industry which employs many women,” she said, reinforcing the state’s position against the hike.
In the meeting, 85% of the items under GST were discussed, according to the West Bengal FM. She said that the discussion on health and life insurance premiums remains unresolved. Bhattacharya confirmed that this issue will be revisited in the next GoM meeting scheduled for October 19, with an additional follow-up on October 20 for remaining items.
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The GST is currently structured into four tiers, with tax slabs set at 5%, 12%, 18%, and 28%.
Bhattacharya highlighted the collective sentiment of the states, noting, “All states unanimously agreed that common people should not suffer because of the rate increase. The states were also of the view that their revenue should also not get affected.”
Meanwhile, other sources privy to the meeting confirmed that the Centre wants to bring down the GST rates on several items from 18% to 12%. However, non-BJP ruled states and some north-eastern states are reluctant as their revenues may suffer.
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“There was a discussion to bring air conditioners (ACs) to 18% from 28%, but many states particularly opposition-led states were unwilling. On health and life insurance premiums, a consensus couldn’t be reached because of the same reason,” a source said on the condition of not being named.
He said most of the items which fall under the 18% slab were discussed in the meeting.
The six-member Group of Ministers (GoM), led by Bihar Deputy Chief Minister Samrat Chaudhary, last convened on August 22 and subsequently presented a status report to the GST Council on September 9.
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The panel includes several key members including West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, Kerala Finance Minister K.N. Balagopal, Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, and Rajasthan’s Minister for Medical and Health Services Gajendra Singh.
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