Finance Minister Nirmala Sitharaman provided an important update on the government’s efforts to simplify the Goods and Services Tax (GST) system. Speaking at the ET Awards event, she said that the government is is very close to finalising its stance on GST rate and slab reductions.
Speaking on the Revenue Neutral Rate (RNR), she said, “if 15.8% has become 11.4%, it has only come down even further.”
A Revenue Neutral Rate (RNR) describes the rate at which the government needs to levy taxes on products and services to derive the same revenue as it did before the implemention of GST.
The FM added that she is personally reviewing every proposal before presenting it to the GST Council for a final decision. The goal is to simplify the system, reduce rates, and ultimately offer relief to taxpayers.
The Finance Minister also challenged her critics, “Let me dispell any Doubting Thomas’ here, that the GST has made life costlier after it was introduced, item by item I would challenge anyone to tell me if there is any one item for which GST rate has gone up after its introduction,” she said.
The 55th GST Council meeting, held on December 21 and chaired by Finance Minister Nirmala Sitharaman, made several key announcements aimed at addressing issues across multiple sectors, including exports, insurance, electric vehicles, and others.