GTRI Advocates Major GST Reforms for Enhanced Economic Growth

GTRI has proposed several GST reforms including raising the GST exemption limit, reducing slabs, and eliminating state-wise registration. The initiative highlights improving inter-state trade and easing the burden on MSMEs. GST collections have reached Rs 20.18 lakh crore, necessitating simplified rules. Increased collections are expected to counteract tax losses.

The Global Trade Research Initiative (GTRI) on Friday recommended several reforms to the Goods and Services Tax (GST) system, including raising the GST exemption limit for firms with up to Rs 1.5 crore turnover, reducing the number of tax slabs, and eliminating state-wise registration.

Celebrating the 7th anniversary of GST's launch, GTRI noted that the tax platform has over 1.46 crore registrations, making it the world's largest indirect tax framework. GST collection for FY24 reached Rs 20.18 lakh crore, with significant contributions from imports, inter-state, and within-state supplies.

The think tank suggests simplifying GST rules to boost inter-state trade and relieve pressures on MSMEs, while increased collections from stricter compliance are expected to offset potential revenue losses from higher exemption limits.

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