Central and state government officials have started discussions on rationalizing commodity and services tax, as Today TV sources tell that the three -level rate structure is also among the options on the table.
This means that three panels are 8 percent, 16 percent, 24 percent, 9 percent, 18 percent and 27 percent.
Both options include provisions for lowering goods with essential necessity and differential treatment of sin commodities such as cigarettes, tobacco and Masala.
The broader goal of these discussions is to simplify the GST frame and enhance its efficiency. Meetings of the highest level were held in recent weeks to explore deeper structural reforms, and the gradual adjustments that have so far exceeded the methodology of systematic complications.
Feelings within the government are that the basic rethinking of the average structure and its implementation is required to reduce compliance burdens and make the tax system more predictor.
Officials believe that timing is suitable for such re -appointment. With the stability of commodity and services tax groups and the stabilization of compensation – designed to compensate for the losses of state revenues – their validity ends soon, there is room to make changes without disrupting financial stability.
The number and design of price panels appeared as a major focus area. Industry groups and tax experts have been repeatedly placed on the current multi -cut structure as confusing and heavy compliance. A simplified framework of three prices as possible solution, supported by clearer rules and more consistent enforcement mechanisms.
At the same time, there are concerns about the double supervision by the central and state tax authorities, which often leads to the overlap of judicial jurisdiction and contradictions. Companies also raised issues about the behavior of field officers, and called for a more facilitating approach to tax management.
The Commodity and Services Tax Council formed a group of ministers in 2021 to study potential changes in the average, but progress was slow due to the lack of consensus among countries. Suggestions such as double prices or applying thresholds to pricing luxury goods remain on the table, although experts warn that these changes can risk adding new layers of complexity if they are not carried out carefully.
The GST total groups in India for the month of June reached 1.84 rupees, an increase of 6.2 % on an annual basis, which reflects a steady economic activity. However, the number represents a decrease from the previous months, with groups worth 2.37 rupees in April and 2.01 rupees in May. The latest decrease in monthly revenue can add urgent discussions about the restructuring of the commodity and services tax system.
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