India Poised to Reduce GST Rates and Simplify Tax Structure: Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman has announced that the government is nearing a decision to reduce Goods and Services Tax (GST) rates and rationalize tax slabs. Speaking at the Economic Times Awards for Corporate Excellence, she stated that the process of reviewing the GST structure is in its final stages, with a focus on lowering rates and simplifying the current multiple tax slabs.
Sitharaman highlighted that since the implementation of GST in 2017, the revenue-neutral rate has decreased from 15.8% to 11.4%, indicating a trend towards reduced taxation. She emphasized the government’s commitment to continuing this downward trajectory, aiming to make the tax system more consumer- and business-friendly.
The Finance Minister also acknowledged feedback suggesting that previous GST reforms may not have been given sufficient time to stabilize. In response, she is personally reviewing the recommendations of various GST committees to ensure that any forthcoming changes align with the country’s best interests.
These anticipated adjustments are expected to bring relief to businesses and consumers by reducing the cost of goods and services. The GST Council’s ongoing efforts to rationalize the tax structure aim to decrease complexity and improve compliance, potentially impacting multiple sectors and contributing to economic growth.
