Nirmala Sitharaman Emphasizes Unity in GST Reforms Amid Denial of Friction Claims

Union Finance Minister Nirmala Sitharaman strongly denied any 'friction' between the Centre and States concerning Goods and Services Tax (GST). She emphasized the importance of simplifying compliance for taxpayers over revenue generation. Sitharaman highlighted the collective efforts needed to sustain India's federal structure and promote developmental activities.

Union Finance Minister Nirmala Sitharaman refuted claims of 'friction' between the Centre and States regarding the Goods and Services Tax (GST) during a consultative meeting on Thursday.

She stressed that prioritizing taxpayer compliance over revenue generation was key in all union Budget discussions. 'Revenue is the last consideration in every budget meeting,' she assured, adding that simplification and easing compliance always came first.

Sitharaman further noted the reduction of the average GST rate to 12.2% as of 2023, down from the initially suggested revenue-neutral rate of 15.3%. She emphasized that the GST framework's federal structure must be respected for collaborative developmental activities and tax base expansion.

(With inputs from agencies.)