New Delhi, 24 May (IANS). The GST Council may rationalize tax rates in its next meeting and consider the future of compensation cess. Along with this, attention can be paid to simplifying indirect tax system and removing discrepancies in the existing Goods and Services Tax (GST) rate framework.
The meeting to be held in New Delhi is expected to be called soon, in which the states are also pressurizing their revenue outlook for clarity before the next fiscal planning cycle.
According to a report quoting NDTV profit sources, the issue of compensation cess launched for the state’s revenue deficit after the implementation of GST is also in discussion, especially when continuing it has become a matter of debate.
Union Finance Minister Nirmala Sitharaman said in March that the GST rates would be further reduced as the process of rationalizing the tax slab is going to be completed.
At the time of GST in July 2017, the revenue neutral rate (RNR) was 15.8 percent, which has now come down to 11.4 percent in 2023 and will decrease further.
Finance Minister Sitharaman said that the work of simplifying the GST slab is almost complete and the GST Council, which is headed by the Finance Minister and including the Finance Minister of the state, will soon take a final decision.
The Group of Ministers (GOM) was formed in September 2021 to suggest changes in GST rates and slabs.
This committee consists of Finance Minister of six states. This committee is working on making the tax system more efficient.
The rationalization process involves reducing the number of tax slabs, streamlining rates and resolving the major concerns raised of various industries.
The Union Minister further emphasized that the final review is going on before presenting the proposal in the next GST Council meeting.
In April, the gross GST collection was recorded at Rs 2.36 lakh crore, which is 12.6 percent more than a gross collection of Rs 2.10 lakh crore in April 2024. The record GST collection in April reflects the strength and stability of the Indian economy.
-IANS
SKT/ABM