India's GST Reforms Simplify Economy with Logical Tax Slabs

In a renewed push towards tax reform, Sanjeev Sanyal, a member of the Prime Minister's Economic Advisory Council, lauded India's revamped Goods and Services Tax (GST) system on Thursday. He articulated how the newly introduced tax slabs present a logical structure, drastically simplifying the previous cumbersome system.

Speaking with ANI, Sanyal emphasized the improved transparency of the new tax regime. He stated that most citizens can now intuitively determine the tax category of various goods. For instance, everyday items like food might fall under a 5% or 0% slab, while luxury goods like air conditioners are clearly categorized, reducing confusion and enhancing economic efficiency.

Sanyal noted that the primary goal was transitioning to a GST-based system. The pre-GST era was marred by a multitude of state and central taxes, leading to widespread inefficiencies. The GST reforms aim to eradicate these issues by establishing a common internal market, akin to a self-imposed free trade agreement among Indian states.

Additionally, the GST Council has greenlighted a simplified registration scheme, easing compliance for small businesses. Amidst these changes, significant rate cuts across sectors have been announced, marking a 'Diwali gift' for the nation, with essential daily items expected to cost less.

(With inputs from agencies.)