- GST Structure Review: Union Finance Minister Nirmala Sitharaman announced that the Goods and Services Tax (GST) Council is in the final stages of reviewing the GST structure, with expected reductions in tax rates and rationalization of slabs to be discussed in the next meeting.
- Historical Rate Decrease: Since the implementation of GST in 2017, the revenue-neutral rate has decreased from 15.8% to 11.4%, with further reductions anticipated as the council finalizes its proposals, aiming to reduce the tax burden on consumers while maintaining government revenue.
- Trade Agreements and Economic Sentiment: Sitharaman emphasized the need for India to prioritize its interests in reviewing trade agreements to manage the influx of foreign goods, and highlighted the importance of improving economic sentiment to achieve a growth rate of around 8% in the coming fiscal year, despite current growth being sustained at 6.5-7%.
Source A2ztaxcorp
