Union Finance Minister Nirmala Sitharaman has said that Goods and Services Tax (GST) rates will be reduced further as the process of rationalising tax slabs is nearing completion.FM Sitharaman mentioned that the revenue neutral rate (RNR), which was 15.8 per cent when GST was introduced in July 2017, has now come down to 11.4 per cent in 2023 and will decrease further.
Speaking at a media event in the national capital, FM Sitharaman said that the work on simplifying GST slabs is almost finished. The GST Council, which is led by the Finance Minister and includes state finance ministers, is expected to take a final decision
However, Congress has called for a complete overhaul of the GST system, saying that mere rate reductions are not enough.
Congress leader Jairam Ramesh said that the government must focus on creating a simplified and less punitive GST system instead of just reducing tax rates on select items.
He pointed out that the party had proposed a “GST 2.0” in its 2024 Lok Sabha election manifesto, which aimed to make the tax system truly “Good and Simple.”
The Congress, he said, remains committed to this vision.
