GST rates may be cut soon, Finance Minister Nirmala Sitharaman said in Rajya Sabha! – Finance Minister Nirmala Sitahraman Say in Rajya Sabha Gst Rates May Cut Like Income Tax Tutd
Finance Minister Nirmala Sitharaman said in Parliament that the cut in the object and service tax (GST) can be expected. Because the GST Council is currently working to ensure the GST rate slab. In addition, the Finance Minister said that after implementing GST, the tax rates already decreased a lot, which was reduced from 15.8 per cent to 11.3 per cent in the previous tax system.
He said that there is no example of tax hike on any blessing object under GST. The Finance Minister said that if we compare with the old indirect tax system, then it has now fallen from 15.8% to 11.3%. Sitharaman said that the GST Council has considered very closely one by one to see where the rates can be cut. Also, it is being considered to mix some tax rates simultaneously.
In response to a question of All India Trinamool Congress (AITC) MP Nadeemul Haq from West Bengal, Sitharaman focused on a continuous decrease in GST rates. He said, ‘The Finance Minister of every state is making its best efforts so that GST can be easier and the difficulties in following the rules are reduced.’
Finance Minister Sitharaman said that at the time of implementation of GST, the consumer could have been imposed 15.8% tax without putting more burden on the consumer. Had this rate been there, GST rates could have been reduced to 11.3% today, but
Will GST rates be low?
MP Nadeemul Haq expressed concern over the complexity of GST and asked if the government is considering decreasing the number of tax slabs similar to the exemption in income tax? In response, Minister of State for Finance Pankaj Chaudhary said that decisions related to GST are taken collectively by the council, which includes Finance Ministers of all states.
He also mentioned the formation of a group of ministers (GOM) after the 45th GST Council meeting. This GOM, constituted under the chairmanship of the Finance Minister of Karnataka, was assigned to review and propose a change to simplify the GST rate.
GST Council will be decided
Discussing the GST rates, Sitharaman made it clear that these decisions are not taken only by the central government. He said that this is not only the Government of India but the collective decision of the GST Council. Finance Minister Sitharaman said that the state finance ministers have the right to propose and discuss the GST rates to meet the needs of their states. These proposals are discussed during GST Council meetings.
GST was not reduced on health insurance
The most recent meeting of the GST Council was held on December 21, 2024, during which important recommendations were made by a panel of state finance ministers. Although many recommendations were discussed, there was no decision on reducing the GST rate to 5% on personal health insurance policies.
