Business Minister Sitharaman to convene with top business leaders to discuss GST reforms.
In New Delhi, Finance Minister Nirmala Sitharaman will confer with Confederation of Indian Industry delegates this Tuesday evening, focusing on the implementation of reforms within the Goods and Services Tax (GST) framework.
The Finance Ministry will engage with business leaders to identify their perspectives on proposed changes in the GST regime, such as rate rationalization, the continuation of the compensation cess, and broader system overhauls. The meeting will be attended by the Secretaries of the Ministry of Finance, along with officials from the Ministry of Corporate Affairs, as reported by sources.
Industry leaders are expected to offer suggestions to formulate the reform strategy and present their views during the meeting. Their input will help the government gain insights into real-world challenges that may need to be addressed.
The government is pursuing these reforms to streamline the GST system, lessen business complexities, and foster economic growth. Notable proposals under consideration are a possible reduction of the number of tax slabs from four to three: 5%, 18%, and 28%. The elimination of the 12% slab may be considered, with goods currently classified in this range being assigned to the remaining three brackets.
The proposed modifications would address ambiguities in product categorization, reduce litigation, and improve compliance, all of which should stimulate consumer demand and boost the economy.
The reforms also aim to bring clarity and uniformity to the tax rate applicable to various products, especially in the food and FMCG sectors, to simplify the classification and resolution of disputes.
These discussions come as the government works towards rationalizing the GST structure and improving the overall business environment to encourage growth and job creation.
The Finance Ministry will solicit business leaders' perspectives on the proposed revisions in the GST regime, such as rate rationalization and system overhauls, during the meeting with Confederation of Indian Industry delegates. The suggestions provided by industry experts are crucial in helping the government understand real-world challenges and formulate a reform strategy to stimulate economic growth and foster a conducive business environment.
