Centre To Build Consensus With States In Coming Weeks On GST Reforms: Sitharaman
The finance minister's address to the GoMs was for about 20 minutes during which she elaborated on the Centre's proposal.
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.
