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GST likely to Have Three-Slab Rate Structure

GST likely to Have Three-Slab Rate Structure

GST likely to Have Three Slab Rate Structure

The four-slab GST rate structure is to be reduced to three slabs in the near future, said the Prime Minister’s Economic Advisory Council chairman Bibek Debroy. While launching a book “GST: Explained for Common Man”, written by former CBEC chairman Sumit Dutt Majumder.

A multiple tax structure makes the GST implementation a challenging process. He said the consensus on this overhaul of India’s indirect tax regime was that the reform, although not perfect, should be rolled out and GST could be a longer process as we go forward”.
He also pointed out that many countries had taken many years for their GST systems to stabilize.

In the meeting Debroy confessed that India will probably have three rates, instead of the current four. Adding to the statement, to make GST more precise and easy he said, “Going ahead, we in India will probably have three rates, instead of the current four tax slabs”
In his address earlier, former President Pranab Mukherjee recalled how the India’s indirect tax system had been proposed by the previous Finance Minister P Chidambaram in the Union Budget in 2006, but the process of political consensus building had moved it around to 2011.

In August, Sanjeev Sanyal, Principal Economic Adviser to the Finance Ministry, too, had revealed about the possibility of three GST slabs. The rates could be as low of 5 per cent, a central 15 per cent (merging the 12 per cent and 18 per cent slabs that exist now) and a top rate of 25 per cent.