GST Council tilts towards rate hikes, drops exemptions for many items

Okays removing the exemption on mass consumption items

The Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, on Tuesday approved in principle hiking the rates for some goods and services and removing exemptions for several mass consumption items to simplify the rate structure, in line with an interim report given by a ministerial panel.

The move is significant because it would aid the states, which have been pressing for either extending the compensation regime beyond June 30 or increasing their share in revenue from the current 50 per cent. The decision, however, would make items costlier for consumers.

The council on Wednesday will take up