Streamlining India's Tax Landscape: The 2025 Vision

The Indian government is focusing on simplifying both direct and indirect tax policies, including the review of the Income Tax Act and GST rate rationalization. Anticipated reforms include the introduction of the GST appellate tribunal and enhanced measures to reduce tax evasion, with technological upgrades supporting this transformation.

As the New Year approaches, the Indian government is set to prioritize the simplification of tax policies, focusing on both direct and indirect tax structures. With an ongoing review of the six-decade-old income tax law and efforts to rationalize GST rates, the government aims to ease compliance for both individuals and businesses.

The GST framework, currently a four-tier system, is under scrutiny, with changes anticipated following discussions within the GST Council. These reforms are expected to include tax cuts for insurance premiums and the long-awaited operationalization of the GST Tribunal, designed to expedite dispute resolutions.

Technological advancements are poised to play a pivotal role, with the forthcoming introduction of the Invoice Matching System and expanded B2C e-invoicing set to enhance transparency. Meanwhile, the government is focused on curbing tax evasion through improved coordination between enforcement agencies and the use of biometric verification for GST registrations.

(With inputs from agencies.)