GST rates set to decrease further, says Nirmala Sitharaman
What's the story
Finance Minister Nirmala Sitharaman has announced that Goods and Services Tax (GST) rates will be reduced further. Speaking at 'The Economic Times Awards,' she said the process of rationalizing tax rates and slabs is nearing its conclusion. The revenue neutral rate (RNR) has already declined from 15.8% at GST's inception on July 1, 2017, to 11.4% in 2023, with Sitharaman promising "it will come down even further."
Rationalization process
Group of Ministers working on GST rates
In September 2021, the GST Council, chaired by Sitharaman and comprising her state counterparts, set up a Group of Ministers (GoM) to rationalize GST rates and suggest changes in slabs. The GoM comprises finance ministers of six states. Sitharaman confirmed that this work is nearing completion but stressed that further review is needed before finalizing any decisions.
Final review
Sitharaman to review GoM's work on GST rates
Sitharaman said, "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 the Council to see if we can come to a final conclusion on this."
Market stability
Addressing stock market volatility
Responding to queries regarding stock market volatility, Sitharaman likened it to unpredictable global events such as wars or sea piracy. She said, "It is like asking will the world be calm, will the wars come to an end, will the Red Sea be safer, will there be no sea pirates. Can I comment on it or any of you can comment."