GST rates to be reduced further, rationalisation on the cards: FM Sitharaman
Union Finance Minister Nirmala Sitharaman has said that Goods and Services Tax (GST) rates will be reduced further as the process of rationalising tax slabs is nearing completion.
FM Sitharaman mentioned that the revenue neutral rate (RNR), which was 15.8 per cent when GST was introduced in July 2017, has now come down to 11.4 per cent in 2023 and will decrease further.
Speaking at a media event in the national capital, FM Sitharaman said that the work on simplifying GST slabs is almost finished. The GST Council, which is led by the finance minister and includes state finance ministers, is expected to take a final decision soon.
'Now, at this stage, there is one more look that I would (take) the groups (GoM) have done excellent work, but I still have taken it upon myself to, once more, completely review each of the groups' works, and then probably take it to take it to the Council to see if we can come to a final conclusion on this,' the Finance Minister stated.
The GoM was set up in September 2021 to suggest changes in GST rates and slabs. This committee consists of finance ministers from six states and has been working on making the tax system more efficient.
The rationalisation process includes reducing the number of tax slabs, streamlining rates, and addressing key concerns raised by different industries.
