GST 2.0 On the Horizon: Nirmala Sitharaman to Meet Industry Leaders for Key Reforms
In a significant move towards overhauling India’s Goods and Services Tax (GST) regime, Union Finance Minister Nirmala Sitharaman will hold a high-level meeting with representatives of the Confederation of Indian Industry (CII) on Tuesday evening.
New Delhi: In a significant move towards overhauling India’s Goods and Services Tax (GST) regime, Union Finance Minister Nirmala Sitharaman will hold a high-level meeting with representatives of the Confederation of Indian Industry (CII) on Tuesday evening. According to sources, this meeting will mark a pivotal step in the rollout of GST 2.0 reforms, aimed at simplifying the tax system and accelerating economic growth.
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Key Agendas: Tax Slab Restructuring and Industry Feedback
The Finance Ministry is expected to seek crucial feedback on:
- GST rate rationalisation
- Future of the compensation cess
- Structural reforms to reduce compliance burden
Proposals under consideration include streamlining the current four-tier GST structure into a simpler three-slab system: 5%, 18%, and 28%. This move could result in the phasing out of the 12% tax bracket, with items being adjusted into other categories.
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Simpler GST System to Boost Compliance and Consumer Demand
Sources in the Finance Ministry highlighted that a simplified tax structure would:
- Reduce litigation and tax disputes
- Improve GST compliance
- Enhance ease of doing business
- Stimulate consumer demand and economic growth
Ambiguities in GST classification, especially on food and FMCG products, have led to prolonged legal battles and revenue delays. These reforms aim to bring clarity and predictability to the system.
Top Officials to Join Industry-Focused Dialogue
The meeting will also be attended by top officials from the Ministry of Finance, Ministry of Corporate Affairs, and key bureaucrats shaping India’s fiscal policy. Industry representatives are expected to make presentations on on-ground issues, aiding the Centre in creating a holistic roadmap for GST 2.0.
Aiming for Growth: Government’s Push to Attract Investment
The GST 2.0 reform is seen as a strategic move to:
- Enhance India’s global competitiveness
- Promote job creation
- Encourage domestic and foreign investment
The meeting comes amid rising expectations from the corporate sector for a business-friendly tax regime that aligns with global best practices.
