<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">Union Finance Minister Nirmala Sitharaman has said that Goods and Services Tax (GST) rates will be reduced further as the process of rationalising tax slabs is nearing completion.&nbsp;
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">FM Sitharaman mentioned that the revenue neutral rate (RNR), which was 15.8%&nbsp; when GST was introduced in July 2017, has now come down to 11.4% in 2023 and will decrease further.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">Speaking at a media event in the national capital, FM Sitharaman said that the work on simplifying GST slabs is almost finished. The GST Council, which is led by the finance minister and includes state finance ministers, is expected to take a final decision soon.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">'Now, at this stage, there is one more look that I would (take) the groups (GoM) have done excellent work, but I still have taken it upon myself to, once more, completely review each of the groups' works, and then probably take it to take it to the Council to see if we can come to a final conclusion on this,' the Finance Minister stated.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">The GoM was set up in September 2021 to suggest changes in GST rates and slabs. This committee consists of finance ministers from six states and has been working on making the tax system more efficient.<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">&nbsp;
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">The rationalisation process includes reducing the number of tax slabs, streamlining rates, and addressing key concerns raised by different industries.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">The Union Minister emphasised that a final review is underway before presenting the proposal at the next GST Council meeting.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">'We'll take it to the next council (meeting). We are very close to coming to a final call on some of the very critical issues, reduction, rationalisation of rates, looking at the number of slabs and so on,' FM Sitharaman said.<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">&nbsp;
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">When asked about stock market volatility, the finance minister attributed it to global uncertainties, including wars, disruptions in the Red Sea, and piracy threats.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">FM Sitharaman said that predicting absolute stability in the markets is difficult due to these unpredictable global factors.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">On the government&rsquo;s plans for public sector banks, the Union Minister added that the efforts are being made to increase public shareholding.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">The goal is to have more retail investors in public sector banks, which will enhance public participation in the banking sector.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">Regarding the India-US trade deal, the Finance Minister mentioned that both countries are working towards a mutually beneficial agreement.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">FM Sitharaman also highlighted that India is actively engaged in negotiations with the European Union and the United Kingdom, ensuring that national interests remain a priority.
<span style="font-family: 'Georgia',serif; mso-fareast-font-family: 'Times New Roman'; mso-bidi-font-family: 'Times New Roman'; color: #001e2f; background: white; mso-font-kerning: 0pt; mso-ligatures: none; mso-fareast-language: EN-GB;">&mdash;IANS

FM Sitharaman said that the work of simplifying GST slab is almost completed & is expected to take a final decision

GST Rates to be Reduced Soon: FM Sitharaman

FM Sitharaman said that the work of simplifying GST slab is almost completed & is expected to take a final decision

March 9, 2025 | 14:28 IST