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Fewer GST slabs possible after rise in revenue:
Context
- Bigger reforms such as lower number of slabs under the Goods and Services Tax (GST) regime will be considered once there is revenue neutrality.
Why such reforms?
- To reduce compliance burden for small taxpayers.
- There will be space for improvement eventually, once economy becomes revenue neutral.
- Bigger reforms such as lesser slabs will depend on revenue neutrality fully.
- At present, GST slabs have rates of 5%, 12%, 18% and 28%.
Change is required
- India is going through indirect taxation at a time when the economy is growing, and the direct tax is paid by the more affluent sections, while indirect tax is a burden on all. Therefore, a change is must.
