GST RATE CUT ON THE CARDS: Finance Minister Nirmala Sitharaman Hints at Major Tax Relief

New Delhi (The Uttam Hindu): Finance Minister Nirmala Sitharaman has hinted at a significant reduction in GST rates, sparking hope for a major tax relief in the future. Speaking at an awards ceremony in Mumbai, Sitharaman revealed that the Revenue Neutral Rate (RNR) has decreased from 15.8% in 2017 to 11.4% in 2023, and is expected to drop even further.The GST Council, chaired by Sitharaman, is nearing a final decision on rationalizing GST rates and slabs.

A Group of Ministers (GoM) formed in 2021 has made substantial progress in streamlining rates and addressing industry concerns. Sitharaman has taken it upon herself to review the GoM's findings before presenting them to the GST Council. The potential GST rate cut is expected to boost demand and consumption. There are rumors that the government might abolish the 12% GST slab and merge it with the 5% or 18% slabs. Currently, GST has four tax slabs: 5%, 12%, 18%, and 28%. With Sitharaman's assurance that GST rates will come down further, businesses and consumers alike are eagerly awaiting the GST Council's final decision.