Average Tax Under GST Dips From 15.8 Per Cent To 11.3 Per Cent, Says FM
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday informed the Rajya Sabha that indirect tax under the Goods and Services Tax (GST) has significantly reduced over the years since its implementation. She stated that the average tax under the previous indirect tax regime was 15.8 per cent, under GST it has now come down to 11.3 per cent.Responding to a question raised by Nadimul Haque, a Member of Parliament from the All India Trinamool Congress (AITC) representing West Bengal, Sitharaman highlighted the reduction in GST rates over time.
She said "Earlier the tax levied on everyday item 15.8 per cent tax could have been levied without additionally burdening the buyer, consumer. If that was the rate at which the GST rates were brought in, today... the rate has come down to 11.3 per cent. That is the level of reduction of rates which have happened in the GST Council".Sitharaman said under GST, taxes have not gone up even on a single item but it has reduced on many items.
During the session, MP Haque also asked whether the government planned to simplify the GST structure by reducing the number of tax slabs, similar to the reforms made in income tax.In response, Minister of State for Finance Pankaj Choudhary said that the GST Council, established under Article 279A of the Constitution, is a strong example of cooperative federalism.
