The Group of Ministers (GoM) on GST rate rationalisation has recommended reducing the Goods and Services Tax (GST) on 20-litre packaged drinking water bottles, bicycles, and exercise notebooks to 5%, while proposing an increase in taxes on high-end wristwatches and shoes, according to a PTI report.
Headed by Bihar Deputy Chief Minister Samrat Chaudhary, the GoM suggested lowering the GST on packaged drinking water (20 litres and above) from 18% to 5%. Similarly, if the recommendation is approved by the GST Council, bicycles costing less than ₹10,000 would see their GST rate drop from 12% to 5%. Exercise notebooks are also expected to benefit from a reduced GST rate of 5%, down from the current 12%.
On the other hand, the GoM recommended increasing the GST rate on high-end shoes and wristwatches. Shoes priced above ₹15,000 per pair, and wristwatches costing more than ₹25,000, would see their GST rates rise from 18% to 28%.
The proposed rate adjustments are expected to lead to a revenue gain of ₹22,000 crore, as per official estimates. These recommendations will now be considered by the GST Council for approval.
The rate changes reflect the GoM’s ongoing efforts to rationalise GST rates and balance the interests of different industries while enhancing revenue for the government.
