Fewer GST slabs possible after rise in revenue:

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.