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CENTRE PLANNING TO SIMPLIFY THE GOODS AND SERVICE TAXATIONSTRUCTURE WITH FEWER RATES


 

The Goods and Service Council is likely to increase some percentage of Goods & Service Tax on specified goods and services in order to reduce the complexity of taxation structure. There are talks to increase the lowest rates of 5% & 12% to 6% and 13% respectively. The Finance Ministry is expected to submit more proposals for streamlining and making the tax structure simpler for reducing the ambiguity around people. It will not be out of place to mention herein that most developed countries who have adopted the Goods and Service Taxation model have a maximum of 1 or 2 taxation rates which applies uniformly to all the goods and services. Sources (1) https://www.deccanherald.com/business/economy-business/centre-mulls-higher-fewer-rate-slabs- to-simplify-gst-structure-1039841.html (2) https://www.business-standard.com/article/economy-policy/govt-may-consider-higher-gst-fewer- rates-to-simplify-structure-report-121101200126_1.html (3) https://www.taxterminal.in/post/good-and-service-tax-is-the-time-ripe-for-tax-slab-rationalization

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