Common ground between Centre, states still elusive on GST rationalisation agenda
A growing clamour for GST rationalisation has the Centre and states trying to find a common ground over the GST roadmap. While the Centre is keen on doing away with the 12 percent GST slab, states on the rate rationalisation panel have, so far, only moved items between the existing rates, government sources said.
“The GoM came to the GST Council with recommendations, suggesting products be moved from one rate to another. But the Centre said that this is not a long-term solution. We need to simplify the rate structure, not just tinker with it,” a senior finance ministry official said. “State finance ministers will have to take a call together. The idea is to simplify rates and make compliance easier.”
After offering an income tax cut, the government's focus has shifted to speeding up long-pending efforts to rationalise the Goods and Services Tax (GST) to further boost consumption and reduce tax-related disputes.
Rationalising the GST structure in India is significant as it may have a more pronounced impact on boosting consumption versus income taxes.
