GST Rate Rationalisation Proposal

• The indirect tax regime in India has faced issues like rate multiplicity, compliance and classification issues, and inverted duty structure.

• Despite the GST Council’s efforts to ease taxpayer burden, rate rationalisation has been slow.

• Prime Minister Narendra Modi announced next-generation GST reforms by Diwali this year.

• The proposal involves replacing the current system of multiple slabs with a two-slab structure of 5% and 18%, and a 40% rate for a few items.

• This would shift almost all items under the current 12% slab to 5% and move 90% of items taxed at 28% to the 18% slab.

• The GST rate fell from 14.4% in 2017 to 11.6% by September 2019, lower than the 15.3% recommended by the Subramanian Committee.

• The proposal may face resistance from states due to potential revenue loss.

• Consensus building in the GST Council is needed to consider the revenue implications of such a move.

GST Reform Proposal is important topic for Civil service exam (WBCS).

✅Telegram channel link: https://t.me/TheSoumyaSir

✅Attempt the daily current affairs test in our free section of app (android and ios) : https://play.google.com/store/apps/details?id=co.iron.rrnvu

✅ Interview related telegram group https://t.me/IASWBCSInterview 🔥 Book free consultation with WBCS Gr A Officer: https://bit.ly/Free-Appointment-with-Soumya-Sir-Other-WBCS-A-Officer

✅ Attempt previous years questions : Link: https://bit.ly/wbcs-pyq-wbcsmadeeasy

8274048710/8585843673

Jawahar IAS www.jawaharias.in 7439954855