Towards GST consensus

Move to rope in home minister in rate rejig talks will give political heft to efforts in bringing states on board

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With little headway in the restructuring of the goods and services tax (GST) framework, it is just as well that Union home minister Amit Shah plans to discuss the issue with states to try and get them on board before the GST Council's next meeting.

The fact is that a consensus on rate rationalisation has eluded the GST Council despite several rounds of discussions, at the 45th meeting in 2021, and more recently, the 55th meeting in December 2024.

Given how contentious some of the proposed changes can be and how these might be contested even by Bharatiya Janata Party-ruled states, trying to build consensus so that the proposals are ratified quickly at the GST Council meet would be worth the effort.

In any case, getting involved in politically sensitive economic matters is nothing new for the home minister as he has been involved in the past in decisions on disinvestment, price rise of staple food items, etc.

Indeed, a rejigging of the GST construct has been on the anvil for some time now.