Finance Minister Nirmala Sitharaman on Wednesday said the next-generation Goods and Services Tax reforms is a step towards making India Aatmanirbhar and the central government looks at building consensus with states in the coming weeks.
The centre’s proposal on GST reforms is based on three pillars– structural reforms, rate rationalisation and ease of living, she said.
During a meeting with Group of Ministers on rate rationalisation, insurance taxation and compensation cess, Sitharaman “emphasised that the proposal by the Central Government is with a vision to usher in the next generation of GST reforms in India’s journey towards becoming #AtmanirbharBharat.” The three GoMs will over two days deliberate on the Centre’s ‘next-gen’ GST reforms under which tax will be levied at 5 and 18% rates. A special 40% rate has been proposed on five to seven items, including sin goods.
“The Central Government remains committed to building a broad-based consensus with the States in the coming weeks to implement the next generation of GST reforms in the spirit of cooperative federalism,” the finance ministry said in a post on X.
GST is currently levied at 5, 12, 18 and 28%. While food and essential items are either at nil or 5% rate, luxury and demerit goods are in 28% slab, with a cess on top of it.
The finance minister’s address to the GoMs was for about 20 minutes during which she elaborated on the Centre’s proposal.
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