The BJP led government’s reduced mandate in the Lok Sabha elections may hinder the implementation of GST rate rationalisation, impacting the poorer sections. There is a possibility of rationalising GST into three slabs from the current four, but any lowering or tweaking of GST rates on semi-essential items could lead to additional tax burden on essential items. This could potentially create dissatisfaction among rural or lower sections of the economy. The group of ministers for GST rate rationalisation is yet to finalize recommendations, and the potential negative impact on lower-income groups is a concern. The aim is to streamline the current GST rates into three categories.
Source A2ztaxcorp
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