GST Reform: A Path Toward Rationalization

Finance Secretary Tuhin Kanta Pandey emphasized the need for GST rate rationalization after gaining implementation experience. A GST Council group is tasked with suggesting rate changes and slab reductions. While progress is ongoing, Pandey underscores the importance of collaboration with states.

Finance Secretary Tuhin Kanta Pandey has highlighted the necessity of rationalizing GST rates as implementation experience grows. Speaking on Monday, Pandey stated, "Experience has shown that rates must be rationalized, involving close consultation with states."

The GST Council, led by Finance Minister Nirmala Sitharaman and including state counterparts, has formed a group of ministers (GoM) to propose rate adjustments and reduce tax slabs. However, the GoM's report remains overdue, as it was expected in the Council's last December meeting.

Addressing industry representatives at a FICCI post-budget meeting, Pandey noted that GST has significantly brought transparency to taxation since its 2017 introduction. He emphasized the need for continued state collaboration and ongoing rate rationalization efforts.

(With inputs from agencies.)