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.

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.

Union finance minister Arun Jaitley with minister for social justice and empowerment Thawar Chand Gehlot addresses a press conference after a cabinet meeting in New Delhi on Wednesday. (PTI)

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.

Read the full story here