Govt may apply same GST rates for similar products

With growing resent and confusion among businesses about exactly what GST rate is applicable on their goods and services, government seems to have softened its stance. To actually simply the GST tax structure, which aims to aid ease of doing business, the government is looking to club similar product into a single tax rate. 

In contrast to government's view that GST has been smoothly implemented, last week Revenue Secretary Hasmukh Adhia highlighted a need for rejigging the rates. Finance Minister, Arun Jaitley had also hinted on a window for revision once the revenues start ticking in. 

Over the last four months, the GST Council has repeated revised the originally proposed rates. Businesses are hopeful of another wave of revision in tax slab which will positively impact the business sentiments and the stock markets as well. 

The Goods and Services Tax has overhauled India's indirect taxation system. The tax reform came into effect on July 1, 2017. GST segregates all goods and services into four broad slab structure namely 5, 12, 18 and 28 per cent, along with sin tax (cess) on demerit goods and luxury items.