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The new structure has reduced the GST bracket to only two (5 per cent and 18 per cent), besides a 40 per cent ‘sin tax’ for select goods, from the earlier more complicated five slabs (0, 5, 12, 18, and 28 per cent).
In a bid to streamline tax compliance processes, the Ministry of Finance has launched several initiatives aimed at simplifying both income tax and Goods and Services Tax (GST) procedures, specifically targeting small taxpayers. These measures are intended to ease tax filing, reduce operational complexities, and encourage voluntary compliance among small businesses and retail investors.
ned as a “good and simple tax.” However, over time, it has become increasingly complex. While a national GST would have been an ideal value added tax (VAT) system, the imperatives of a federal structure led to a compromise, resulting in a dual GST system comprising Central GST (CGST), State GST (SGST) and Integrated GST (IGST).
The Central Board of Indirect Taxes and Customs (CBIC), the government’s indirect tax policy body, has laid down an annual plan for a supportive, people-focused and tech-driven tax administration for FY26, its chairperson Sanjay Kumar Agarwal said.
GCCI has urged the State government to recommend to the Union government a rationalisation of the GST slab, with the aim of reducing compliance burdens and removing the cascading effect of taxes.
Simplification of direct and indirect tax policies will be the main focus area for the government in the New Year after beginning the review of the six-decade-old income tax law and rationalisation of the GST rate in 2024. With monthly gross GST Collections establishing at around at Rs. 1.8 lakh crore and gross direct tax collections steadily at 20 per cent rate, the effort to ease compliance burden for individuals as well as corporates will gain traction.
Revenue Minister Krishna Byre Gowda on Tuesday said that he would place before the GST Council the suggestions mentioned by the Legislative Council members regarding further simplifying the taxation rules and also for addressing specific matters.
Simplifying India’s Goods and Services Tax (GST) system by reducing the number of tax rates, expanding its base, and leveraging digital tools could be a transformative step in addressing inefficiencies, economist and former member of the 14th Finance Commission M Govinda Rao has said.
India’s GST regime is very complicated and there is a need to simplify this biggest indirect tax reform introduced in…
Structural reforms need to be a continuous process, Gita Gopinath, Deputy Managing Director of International Monetary Fund (IMF) said, highlighting that India needs to further rationalise and simplify the Goods and Services Tax regime to increase revenues.