Next-Gen GST Reforms: A Path Towards Aatmanirbhar Bharat
Finance Minister Nirmala Sitharaman highlights India's move towards Aatmanirbhar with next-gen GST reforms. The initiative includes structural changes, rate rationalization, and focuses on cooperative federalism. Proposed GST rates will be 5% and 18%, with luxury and sin goods taxed higher.
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- India
Finance Minister Nirmala Sitharaman has announced the central government's plan for next-generation GST reforms as a strategic move towards making India Aatmanirbhar. The government intends to work with the states to build consensus on these sweeping changes in the coming weeks.
The proposed GST reforms rest on three pillars: structural reforms, rate rationalization, and ease of living. During a meeting with several Groups of Ministers (GoMs), Sitharaman stressed that these reforms aim to take India forward in its journey towards becoming an Aatmanirbhar Bharat.
The GoMs are set to deliberate over two days on these significant changes, which propose tax rates of 5% and 18%, with a special 40% rate for certain sin goods. Currently, GST rates stand at 5%, 12%, 18%, and 28%, with essential items often taxed at nil or 5% to ease the financial burden on citizens.
(With inputs from agencies.)
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