GST Council's fitment committee likely to consider dropping 12% slab

Revamped GST rates may be implemented this financial year

The fitment committee under the Goods and Services Tax (GST) Council, comprising central and state officials, has begun a rate rationalisation exercise afresh, checking the possibility of dropping some of the rates, particularly the 12 per cent slab, to achieve a revenue-neutral structure, a senior official with direct knowledge of the matter told Business Standard.

The GST regime could see an overhaul in the current financial year (FY25) as it may move to a three-slab structure from the existing four.

The current rate structure comprises standard rates of 5 per cent, 12 per cent, 18 per cent, and the highest rate of