Efforts to rationalize GST rates begin

16-Aug-2025 11:36 AM

New Delhi. After the Prime Minister's announcement, the Union Finance Ministry has started efforts to improve the structure of Goods and Services Tax (GST) so that the common man can get some relief from inflation.

Although the Prime Minister had said in his speech that GST is an important step towards tax reform which has benefited the country,

but the Finance Ministry has said that for the creation of a self-reliant India, efforts and proposals are being made to make important reforms in the GST structure which are focused on three levels - structural reform, rationalization of rates and ease of living.

According to the Finance Ministry, for the next generation reform, special emphasis will be laid on rationalizing the tax rates under GST, which will benefit all sections of the society and especially the common man, women, students, middle class and farming community. By rationalizing the tax rates, disputes related to classification can be reduced or eliminated.

According to the information received, the Finance Ministry can try to reduce the four slabs of tax under GST and keep them stable at two.

This means that tax rates on essential items of daily use can be reduced while taxes on luxury items can be increased. Since GST generates a huge revenue for the government, overall it would not want to reduce this revenue but tax rates can be rationalized in such a way that the common man is least burdened by it.

The Finance Ministry says that GST reform will help strengthen key economic sectors, encourage economic activities, ensure greater stability in tax rates and increase ease of doing business.