Rate rationlisation likely to be top priority for GST Council in FY25
In what could be a game changer for the current GST regime, the government is likely to explore the possibility of shifting to a 3-slab structure in the coming fiscal.
According to sources in the know of the development, “Rate rationlisation is likely to be top priority for GST Council in the coming fiscal and the council could begin the discussion on moving to a 3-slab structure as next phase of GST.”
But what could rate rationalisation mean for the PEOPLE of the country?
Well! Sources say that, “Rationalisation could move items across slabs. But, while undertaking thew rationalisation exercise the government will be cautious of the overall tax incidence.”
Rate rationalisation was a plan envisaged by former Finance Minister Arun Jaitley. After the launch of GST, in 2017, the then Finance Minister Arun Jaitley had hinted at the scope of moving to a 3-slab structure. Jaitley in August 2017 had indicated that there could be scope for rationalisation of rates under the Goods and Services Tax (GST) as its implementation progressed. “I do concede that as it (GST) moves forward, there will be scope for rationalising the rates. There, probably, will be scope that the two standard rates of 12% and 18 per cent, after some time, could be clubbed into one. That is a fair possibility and a suggestion,” Jaitley had said replying to debate on the two bills related to GST in J&K.
