|
Finance Minister Nirmala Sitharaman on Tuesday informed the Rajya Sabha that indirect tax under the Goods and Services Tax (GST) has significantly reduced over the years since its implementation.
She stated that the average tax under the previous indirect tax regime was 15.8 per cent, under GST it has now come down to 11.3 per cent. Responding to a question raised by Nadimul Haque, a Member of Parliament from the All India Trinamool Congress (AITC) representing West Bengal, Sitharaman highlighted the reduction in GST rates over time. She said "Earlier the tax levied on everyday item 15.8 per cent tax could have been levied without additionally burdening the buyer, consumer. If that was the rate at which the GST rates were brought in, today... the rate has come down to 11.3 per cent. That is the level of reduction of rates which have happened in the GST Council". Sitharaman said under GST, taxes have not gone up even on a single item but it has reduced on many items. During the session, MP Haque also asked whether the government planned to simplify the GST structure by reducing the number of tax slabs, similar to the reforms made in income tax. In response, Minister of State for Finance Pankaj Choudhary said that the GST Council, established under Article 279A of the Constitution, is a strong example of cooperative federalism. He stressed that all GST-related decisions are taken by the GST council which is represented by finance ministers of all states. To rationalize GST rates, Choudhary said that a Group of Ministers (GoM) was formed following the 45th GST Council meeting. The GoM, chaired by the finance minister from Karnataka, was tasked with reviewing and suggesting changes to simplify the GST rate structure. Speaking further on the issue of GST rates, Finance Minister Sitharaman clarified that the rates are not decided solely by the central government. "It is not a singular decision of the Government of India; it has to be a decision of the Council," she said. She added that Finance Ministers from all states are fully empowered to discuss and propose changes in GST rates based on the needs of their respective states. These discussions are then taken up for consideration in the GST Council meetings. She said if any state wants any changes in GST rates of any item they should approach the GST council through their finance minister. The GST Council, which includes representatives from both the central and state governments, meets regularly to review tax policies and make necessary adjustments to ensure a fair and balanced taxation system. (ANI)
|
