On September 16th, Monday, Union Finance Minister Nirmala Sitharaman said that the Narendra Modi government is keen on the process of rationalising the GST rates to make them hassle-free and there is also the likelihood of a reduction of rates. In her address at an event, she assured that at present, a GoM is mulling over some suggestions to rectify the existing standard of GST.
The Finance Minister emphasised that GoM is also aimed at exempting basic goods from the highest tax slab for their ease on the consumer. "The group of ministers is working on it about GST. There are two things: one, to bring the rates down, further simplify it, and put essential goods into one category, which is the lowest," Sitharaman stated.
Currently, India's GST is divided into five tax categories ranging from 0% to 28%. Continuing initiatives are underway to simplify the picture and offer more certainty and stability, to businesses and consumers. The final recommendations will be made by the GoM and will then be forwarded to the GST Council so as to be implemented.
This rationalisation could lead to more uniform taxation and a potential reduction in GST rates, benefiting both consumers and businesses by easing the tax burden and improving compliance.
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