Indian Government to review its GST Structure |
India`s Goods and Services Tax Council is set to embark on a comprehensive review of its tax structure in the wake of growing revenue concerns when it meets on the 18th of December. The review will include exempted items, GST and compensation cess rates and revenue augmentation measures. The GST Council secretariat has sought inputs from state governments on all these issues. Rate calibration to address the inverted duty structure, compliance measures other than those currently under implementation and any other revenue augmentation measures will also be up for review. The move comes against the backdrop of states complaining about the Centre delaying compensation payments to them as revenues have slowed. However, after declining for two consecutive months, GST collections grew 6% to Rs 1,03,492 crore in November following the festive season sales push. Finance minister Nirmala Sitharaman at an Industry event said that GST rate simplification was under consideration. “As regards the rationalisation of the taxation… too many rates, too many high rates and so on, we are having a good conversation with all the states. The government wants to ensure that essential items are kept at the lowest rate if not exempted from GST. “But for the rest of them we are trying to rationalise.”
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