GST Overhaul: India Set to Simplify Tax Structure with Two-Slab Reform
The 56th GST Council meeting aims to reform India's tax system by reducing current slabs from four to two. This initiative, backed by BJP MP Praveen Khandelwal, promises to simplify compliance and benefit traders and consumers alike, with upcoming reforms expected to be a significant next-generation shift.
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- India
BJP MP Praveen Khandelwal voiced optimism regarding upcoming GST reforms ahead of the 56th GST Council meeting, emphasizing benefits for traders and consumers through simplified compliance. The meeting, starting today, may streamline GST by transitioning from a four-slab to a two-slab system: 5% and 18%.
Describing the reforms as "a major next-generation GST reform" under PM Narendra Modi's leadership, Khandelwal highlighted traders' anticipation for reduced slabs, potentially shifting several products from higher to lower tax brackets. The government aims to eliminate 12% and 28% slabs, focusing on 5% and 18%, potentially enhancing efficiency and tax compliance.
Amid high expectations, Finance Minister Nirmala Sitharaman emphasized further compliance reductions in the coming months, especially for small businesses. A proposed 40% slab specifically targets "sin goods" like tobacco. The reforms, supported by a Group of Ministers, align with PM Modi's announcement of a substantial Diwali gift through major GST reforms.
(With inputs from agencies.)
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