GST rationalisation review in final stages: Sitharaman

The government is in the final stages of reviewing the country's goods and services tax (GST) regulation, and rationalisation and reduction of the levy would happen soon, Union finance minister Nirmala Sitharaman said at The Economic Times Awards for Corporate Excellence 2024 on Saturday.

- Mint Correspondent

MUMBAI:

Sitharaman said representations from states related to changes in GST were in the final stage of review, and the Union government was considering putting a proposal for rationalisation of the levy and potential changes in the tax slabs before the GST Council in its next meeting.

The GST Council comprises the Union finance minister along with all state finance ministers. GST rates have come down since the law was implemented in 2017, and the currently ongoing revision is also likely to lower the levy further, the minister said.

"At the time when the GST was launched, the revenue-neutral rate was about 15.8%," said Sitharaman.

Sitharaman also said that the World Trade Organization (WTO) was ineffective in resolving trade disputes, making the clarity of language in bilateral agreements more important amid tariff uncertainties.

Speaking about negotiation of free trade agreements, Sitharaman said that India's interest must be put first.