Everyone is looking forward to the upcoming 56th GST Council meeting, where important changes to tax rates are likely to be discussed. Finance Minister Nirmala Sitharaman has suggested that there will be efforts to make the Goods and Services Tax (GST) system easier to understand and follow. It seems that some tax rates may be reduced to help achieve this goal.
GST Rates Restructuring
There has been ongoing discussion on the proposed rate and slab restructuring for the Goods and Services Tax (GST). The question is: when will it come into effect? The Finance Minister stated that “the time has come to build consensus within the GST Council and introduce a simplified, easy-to-comply GST structure.”
Much more work is going on with the same concern, FM cited. Also, she mentioned that she has given much time towards 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, etc.
Do Rates of GST Drop Down?
Finance Minister Nirmala Sitharaman said that we are working on reducing the GST rates, and it is expected to be reduced. If the rates get reduced enough, then the revenue shall increase, which will lead to an expansion.
GST is an effectively developed system where the items in the VAT regime were brought in, and this (items included under GST may not need to change), she added.
Upcoming 56th GST Council Meeting
For the much-awaited 56th GST Council Meeting, there is no clarity on the dates till now. In early July, it is anticipated to be conducted, and some long-pending demands comprising of restructuring of rates are anticipated to be addressed.
If the statement of the Finance Minister is an indication, then the economy can get ready to lower the GST rate, as well as reach a consensus for an easier process.
