Ahead of the GST Council meeting on September 9, Union Finance Minister Nirmala Sitharaman emphasized that the current GST rate of 12.2% is significantly lower than the revenue neutral rate (RNR) of 15.3%. This reduction, she noted during an event by the Revenue Bar Association in Chennai, translates to a lighter burden for taxpayers.
Sitharaman explained that revenue generation is not the primary focus of budget consultations. “Revenue is the last consideration with which every budget set of meetings happens,” she said. While acknowledging the importance of raising revenue, her priority remains on simplifying and easing compliance for taxpayers. She highlighted the rigorous consultation process involving the Prime Minister’s Office and discussions with Prime Minister Modi.
Reflecting on the implementation of GST, Sitharaman praised the efforts from 2014 to 2019 to establish a unified taxation system under the “One Nation, One Taxation” framework. She stressed the need for cooperation between the central and state governments to enhance revenue generation while avoiding undue burdens on taxpayers. “Both the centre and the states can work together in developmental activities and in widening the tax base,” she affirmed.
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