A simplified GST

Revenue collection must be closely tracked

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Inhis address to the nation on Sunday, Prime Minister Narendra Modi underscored how changes in the goods and services tax (GST) structure — which were cleared by the GST Council earlier this month and came into effect on Monday — would make goods and services more affordable for people and simplify operations for businesses.

The GST Council, in its 56th meeting, had decided to move mainly toa two-rate structure, 5 per cent and 18 per cent, for most goods and services, with a demerit rate of 40 per cent for a select few goods. The council also did away with the compensation cess except on a few sin goods, which will be collected until the loans raised to compensate states during the pandemic are repaid. This is likely to be over in the coming few months.