GST slabs may come down to three, in addition to the exempted category, in the long-term, said Sanjeev Sanyal, Principal Economic Adviser to the Finance Ministry.
The slabs could be a low of 5%, a central 15% (merging 12% and 18% slabs that exist now) and a top rate of 25%, he said at a session organized by Bharat Chamber of Commerce in Kolkata.
"In the long-term, the GST rates might be squeezed to three as more and more simplification will be done," Sanyal said.
Presently, there are four GST slabs of 5%, 12%, 18% and 28%, apart from the exempted category which attracts 0% GST.
The Economic Advisor said a bulk of the goods might get taxed in the 15% slab.
Earlier this week, Bihar Deputy Chief Minister Sushil Modi, who also heads a high-level minister panel on GST, had said that the slabs may come down in the future.
Sanyal, who was a renowned economist before joining the government, said that after indirect taxes (GST), the government is planning to undertake legal and administrative reforms.
"The inability of the legal system to enforce contracts needs to be addressed and this requires reforms," he said.
"The administrative reforms are also on the government's radar," the Economic Advisor added.
Sanyal later also said that there has been a slowdown in the Indian economy but it is now beginning to recover.
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