Mumbai: In a significant move towards simplifying India’s tax landscape, Finance Minister Nirmala Sitharaman has announced that Goods and Services Tax (GST) rates will be reduced further. This development marks a crucial step in the ongoing process of tax rationalization, which aims to streamline GST rates and slabs. The GST Council, led by Sitharaman, is on the verge of making a final decision on key changes after an extensive review by a Group of Ministers. This move is expected to benefit various industries and consumers by simplifying and streamlining GST rates.
The GST Council’s efforts are part of a broader strategy to enhance economic efficiency and consumer welfare. With the Revenue Neutral Rate (RNR) already decreasing from 15.8% in 2017 to 11.4% in 2023, further reductions are anticipated. A Group of Ministers (GoM) was established in September 2021 to rationalize GST rates and propose changes in tax slabs. This group has made significant progress, and the GST Council is close to making a final call on critical issues, including rate reduction and slab rationalization.
Sitharaman emphasized the need for a thorough review before presenting the proposal to the GST Council. She noted that while the GoM has done excellent work, she will personally review their findings to ensure a comprehensive approach. This careful consideration underscores the government’s commitment to getting the tax structure right.
Beyond GST reforms, Sitharaman also highlighted the government’s commitment to increasing retail investor participation in public sector banks through stake dilution. This move is part of a broader strategy to enhance public sector bank governance and attract more retail investors.
On the topic of stock market volatility, Sitharaman pointed to global uncertainties as contributing factors. She noted that predicting market stability is challenging in the face of global conflicts and geopolitical tensions.
