New Delhi: Finance Minister Nirmala Sitharaman is scheduled to meet leading representatives of India Inc today, May 27, as part of the Centre’s renewed push to reform the Goods and Services Tax (GST) system under the proposed GST 2.0 framework, according to a report by Moneycontrol citing government sources.
The meeting is expected to feature comprehensive presentations from top industry stakeholders outlining their proposals and expectations for the next phase of GST reforms. Senior government officials — including secretaries from the Finance Ministry, officials from the Ministry of Corporate Affairs, and Chief Economic Adviser V. Anantha Nageswaran — are also expected to participate.
“This meeting is part of broader consultations aimed at restructuring the GST regime to make it more streamlined and industry-friendly,” a senior official told Moneycontrol. The discussions are anticipated to help build consensus with states ahead of formal policy decisions.
Key Focus Areas
Rate Rationalisation
A major point on the agenda is the simplification of the current four-rate GST structure — 5%, 12%, 18%, and 28% — into a three-tier system by potentially eliminating the 12% slab. The revised structure would retain the 5%, 18%, and 28% rates.
Government officials believe this rationalisation could reduce litigation, enhance compliance, and stimulate consumer demand. “The aim is to move toward a cleaner, more growth-supportive tax regime without sacrificing revenue,” a senior source explained.
Boosting Consumption
Economists suggest that simplifying indirect taxes such as GST can have a more immediate effect on consumption compared to direct taxes, particularly in the current economic environment.
Classification Clarity
The classification of goods — especially food items — under various tax slabs remains another high-priority issue. Ongoing ambiguity in categorisation has led to legal disputes and revenue losses. Officials say GST 2.0 will place a strong emphasis on resolving these classification challenges.
Broader Reform Goals
Since its rollout in July 2017, GST has been hailed as a landmark reform in India’s indirect taxation system. However, businesses have frequently flagged issues including rate complexity, compliance burdens, and unclear classifications. While past efforts by the Group of Ministers have led to incremental changes, GST 2.0 is expected to deliver a more sweeping and systemic overhaul.
The Finance Ministry has not yet released an official statement on the outcome of today’s meeting, but industry feedback is expected to play a critical role in shaping the roadmap for the next phase of reforms.
