Finance Minister Nirmala Sitharamanโs address to the Group of Ministers (GoMs) was for about 20 minutes, during which she elaborated on the Centreโs proposal.
Finance Minister Nirmala Sitharaman on Wednesday presented comprehensive reforms in the GST system to a Group of Ministers (GoMs) from states. She said that the government’s plans for sweeping reforms in the GST regime involve slashing tax rates and easing the compliance burden for businesses. There are currently four slabs of GST: 5, 12, 18, and 28 per cent. While essential items and food are either at nil or 5 per cent rate, luxury and demerit goods are in 28 per cent slab, with a cess on top of it.
According to the proposed reforms, the four slabs will be reduced to two, and tax will be levied at 5 and 18 per cent rates. A special 40 per cent rate has been proposed on 5-7 items, including sin goods.
The GoMs on rate rationalisation, insurance taxation, and compensation cess will, over two days, deliberate on the Centre’s ‘next-gen’ GST reforms.
The finance ministerโs address to the GoMs was for about 20 minutes during which she elaborated on the Centreโs proposal, news agency PTI quoted a source as saying.