GST 2.0: The Ministry of Finance takes place with industry representatives

belt:

Sorrabi

The Ministry of Union Finance held discussions with industry representatives on concerns about the goods and services tax (GST) and recommendations on how to improve the indirect tax tax. Discussions, which take place in recent weeks, come against the background of the work of the Commodity and Services Tax Council to review and rationalize the multi -tax structure of the tax.

According to the sources, industry representatives also raised the issuance of reducing multiple rates under commodity and services tax and also called for a simpler classification that would help reduce disputes and litigation. The sources said that cases about the complexity of the commodity and services tax were also discussed.

Moreover, it is understood that industry representatives have called for a structure of three prices of commodity and services tax as well as measures to improve compliance, which in turn will reduce the tax burden while filling in more revenues.

The move comes at a time when the Commodity and Services Tax Council is working, headed by the Federation Minister of Finance, Nermalla Setharmann, to rationalize prices to impose indirect tax. A group of ministers headed by the Deputy Prime Minister of Bihar Samarat Chaudhry is already working on how to rationalize and simplify the tax structure.

With the completion of GST for eight years in July of this year, there were calls for a full reform of the indirect tax tax to care for the various cases that have appeared over the years and a more simplified tax under GST 2.0.

In its last meeting in December 2024, the Commodity and Services Tax Council postponed the issue of rationalizing prices because GOM had postponed its report at that time.

A meeting of the Commodity and Services Tax Council is expected to be called soon, perhaps in early July, although the data has not been completed yet.

The sources indicated that the Ministry of Finance “is studying” different options about the improvements in GST and how to move forward in renewing indirect tax tax. It is also understood that many states have raised concerns about the loss of potential revenue with the rationalization of the commodity and services rate structure.