All eyes are on the next GST Council meting and the possibility of rate restructuring going forward. In an exclusive interview with FE, Finance Minister Nirmala Sitharaman has indicated that a simplified and easy-to-comply GST is in the works and the GST rates are set to be lower going forward.

Restructuring of GST rates

There has been significant discussion on the proposed rate/slab restructuring for the Goods and Services Tax. The big question is when will it to take effect? The Finance Minister is confident that, “the time has come for getting some consensus in the GST Council and coming up with a very simplified and easy-to-comply GST. We will be doing it.”

She added that, “There is a lot of work happening in this regard. After the budget, I have spent a lot of time going into every item, looking at the rates at which they are, looking at the inversion which has come in, the layered way in which taxes are levied and so on.”

Will GST rates come down?

The Finance Minister explained that “The expectation is that it (GST rates) will come down, and we are working on it.  Revenue buoyancy will rise if the rates are low enough, and that leads to an expansion.”

She further elaborated that the “GST is a well-laid-out system, where items in the VAT regime were brought in, and this (items included under GST may not need to change).”

Next GST council meeting

There is still no clarity on the dates for the much awaited 56th GST Council Meeting. It is expected to be held in early July and some long pending demands including restructuring of rates are expected to be addressed.

If the Finance Minister’s statement is an indication, the economy can brace for not just lowering of the GST rate but a consensus on a simplified process too.

Source: The Financial Express