GST

THE REFORMS SEASON IS BACK THE NEXT-GENERATION REFORMS ANNOUNCED BY THE PM ON INDEPENDENCE DAY WILL HELP INDIA ACCELERATE GROWTH.

- BY ASHUTOSH KUMAR

RAISINA HILL, THE seat of the government in the heart of Lutyen's Delhi, is abuzz with activity in the wake of Prime Minister Narendra Modi's announcement of next-generation reforms on Independence Day. The PM has set the reforms bandwagon rolling beginning with a GST rate cut, which he called a Diwali 'gift' for citizens. And more initiatives are on the cards to make Indian products competitive globally and expedite economic growth.

The finance ministry has proposed a reduction in GST on essential items to 5% from 12%, and to 18% from 28%. A special slab of less than 5% will continue to promote employment-generating sectors, while a 40% slab has been proposed, which would comprise five to seven sin goods. On August 20, finance minister Nirmala Sitharaman held a meeting with the Group of Ministers (GoM) under the GST Council and said the central government is committed to building consensus with states on the reforms.

At the time of going to press, the proposals had been approved by the GoM. The lightning speed of approvals—being witnessed for the first time in GST's history—indicates that the government had been preparing the proposals and working to build consensus with states much ahead of the announcement.