India says it plans to simplify GST rate regime in coming months

NEW DELHI : India is working on simplifying the country’s sales tax regime by introducing three slabs instead of the existing four rates, a top tax official said.

“Too many rates in goods and services tax areleading to classification disputes and that needs to beresolved,” Mr. Sanjay Agarwal, Chairman ofthe Central Board ofIndirect Taxes and Customs said in an interview Wednesday.

Mr. Agarwal said GST compliance has improved since the tax was introduced in July 2017 and revenue growth has stabilized. That gives the government room to review the rates to simplify the system, he said.

Revenue from GST has been steadily rising over the years and increased 11.7% in the fiscal year through March 2024. The collections rose to 1.74 trillion rupees in June.

Mr. Agarwal said the government intends to simplify the GST structure by taking the existing slabs of 5%, 12%, 18% and 28% and combining it into three rates. The new rates would not impact the revenue collection adversely and the entire exercise “will be done in next few months.

” On Tuesday, the government also announced a reduction in the import duty on gold to boost jobs and exports in gems and finished jewelery products.

Source : https://indiashippingnews.com/india-says-it-plans-to-simplify-gst-rate-regime-in-coming-months/