The GST system has underperformed, with tax collections not matching its potential. Simplifying the structure can help address long-standing issues
Current tax slabs, including the compensation cess, have not delivered optimal revenue. The goal must be a revenue-neutral rate with fewer slabs
The GoM’s proposal to add new tax slabs, like a 35% rate on tobacco and aerated drinks, risks further complicating the GST system
A simplified tax structure will increase compliance, reduce disputes, and ease doing business, particularly for small enterprises
Merging the 12% and 18% slabs could reduce complexity and result in minimal disruption, improving tax mobilisation
The GST Council must act wisely, ensuring that any changes are well-thought-out, balancing progressiveness with simplicity for long-term benefits