Arun Jaitley says fewer GST slabs possible in the future
Jaitley said the Council chose to keep four rates, 5%, 12%, 18% and 28%, rather than a single rate for all products keeping in mind the fact that consumers are in different income groups.Updated: Aug 31, 2017 14:00 IST
Finance minister Arun Jaitley on Thursday indicated that the number of tax slabs under the goods and services tax (GST) regime could be reduced once the new indirect tax system that was launched on 1 July settles down.
Speaking at the India summit organised by The Economist in the capital, Jaitley said the GST Council which takes decisions on all indirect tax matters may consider the idea of collapsing the standard rates of 12% and 18% into one in due course.
“I do see a situation where, assuming tax compliance remaining high and the transition smooth, the GST Council, the first federal institution, which is sensitive to the challenges of time, can take the appropriate decision (on tax slabs) taking into account it’s impact on inflation,” the finance minister said.
First Published: Aug 31, 2017 13:59 IST