GST Reforms to Impact Consumer Goods, Business Compliance, and Economy
The GST Council, led by Finance Minister Nirmala Sitharaman, has initiated reforms to overhaul the GST system. Key proposals include reducing tax rates on common-use items to stimulate spending and take measures to ease compliance. The council aims to counter the economic impact of US tariffs.
- Country:
- India
The GST Council, guided by Union Finance Minister Nirmala Sitharaman, began deliberations on Wednesday to reform the complex GST structure, aiming to revitalize domestic consumption amid global economic challenges.
Proposed changes include slashed tax rates on essential goods and simplification of tax compliance, potentially invigorating consumer confidence and cushioning the adverse effects of high US tariffs on Indian exports.
While some states express concerns over potential revenue losses, there's broad support for measures expected to bolster the economy by up to 0.5 percentage points upon full implementation.
(With inputs from agencies.)
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