FM Sitharaman Hints at GST Rate Rationalisation to Simplify Tax Structure

Finance Minister Nirmala Sitharaman has indicated potential changes in the Goods and Services Tax (GST) structure through a process known as "GST rate rationalization." This initiative aims to simplify the tax structure by reducing the number of tax slabs, possibly merging the 12% and 18% slabs into a single one. Sitharaman highlighted that this move would not only streamline GST compliance for businesses but also ease tax collection. The rationalization comes in the wake of rising demands for a more simplified GST system, particularly from small and medium enterprises (SMEs). The Finance Minister’s announcement suggests that the government is considering long-term measures to improve the efficiency and transparency of the tax system, aligning it with global best practices.