Finance Minister Nirmala Sitharaman called for GST rate rationalisation in her Budget speech on July 23. CBIC Chairman Sanjay Kumar Agarwal proposed a 3-tier rate structure to reduce litigation and keep rates aligned with their nature. He suggested having one standard rate, one higher rate for specific items, and one lower rate. Agarwal emphasized the need to simplify compliance and avoid increasing litigation. The Finance Minister also announced the intent to rationalise the existing customs duty structure. Agarwal mentioned plans to revise and rationalise the customs duty structure in the upcoming Budget in 2025, focusing on domestic players, supply chain diversification, and correcting any real inversion. He stated that CBIC has a ready study and rate list, and will use real-time granular data to shape the new custom rates for the upcoming Budget.
Source A2ztaxcorp
