Chief economic adviser (CEA) to the Finance Ministry Krishnamurthy Subramanian on Thursday (29 July) said that the rationalisation of the goods and services tax (GST) structure into three slabs is on the government's agenda and it is definitely going to happen.
"I think that's something definitely going to happen," he said in response to a question on GST 'structure rationalisation' at an event organised by the industry body ASSOCHAM, reports Economic Times.
"The three-rate structure is definitely important. Even the inverted duty structure that is there is equally important to fix. The government is definitely seized of the matter. You should hopefully see traction on that soon," he said.
Subramanian said the original plan was to have a three-rate structure. "But I think what we have to be very cognizant about is that oftentimes with policy making you don't want perfect to actually become the enemy of the excellent," he added.
The 15th Finance Commission, headed by N K Singh, in its report has also made a case for GST structure rationalisation
The GST, which was rolled out in 2017, had subsumed multiple state and central indirect taxes into one. It has five rates currently-0.25 per cent, 5 per cent, 12 per cent, 18 per cent and 28 per cent plus cess on luxury goods. However, most of common use items have been exempted from GST.
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