Prime Minister Narendra Modi announced the next generation reform in GST on the occasion of Independence Day on 15 August. Addressing the country from the ramparts of the Red Fort on the occasion of 79th Independence Day, the Prime Minister said that how much the country has benefited from the GST system implemented in 2017. He said that the Next Generation Reforms in GST will benefit the common man, farmer, middle class and MSME. The government is going to reduce GST rates under this reforms in October this year. This will reduce the prices of many important things.
Reforms in GST for self -reliant India
Government keeps ‘self -reliant India’ in mind GST Is going to make major changes in. Under this, the government is going to do structural reforms. Second, GST rates are going to decrease on many items. Third, the government wants to increase ‘Ease of Living’ by changing the GST system. The government has given the Group of Ministers about this (Gom) Proposals have been sent to the GST system to change reforms and rates. The GST Council made a GOM to suggest about reforms in GST.
Ease of doing business will increase with reforms in GST
The Ministry of Finance has posted a post on social media x on August 15 and told about the government’s plan of reforms in GST. It states that the objective of the reforms is to reduce the controversies related to the classification of items. In some special sectors, the government wants to eliminate the problem of inverted duty structures. The government wants stability in GST rates. The government aims to increase the Ease of Doing Business.
Many sectors of economy will increase growth
The government believes that many sectors of economy will benefit from reforms in GST system. Economic activity will increase. This will speed up the growth of many sectors. Currently, there is a problem of inverted duty structure in terms of many items. This means that an item is less tax, while the input used in the manufacturing of that item is more tax. Domestic Value Edition will be promoted by removing this deficiency. The government is going to change the rates to reduce the dispute related to classification.
Common man will get relief due to reduced prices of essential things
Relief to the common man is a major purpose of GST reforms. Under this, the government wants to reduce tax on many items including essential things. The government believes that this will make the prices of things come under the purview of people. This will increase the consumption. Also, a large part of the population will get a lot of relief. The government wants only 2 slab systems ahead. It will have two slabs-standard and merit. Special rates will be for only a few selected iToms.
Focus on making GST registration process easier
The government also wants to make the process of GAC registration easier. There is a plan to increase the use of technology. This will reduce the time taken in the entire process. Small businesses and startups will get more benefit from this. Apart from this, pre-field returns are being implemented. This will reduce human intervention and reduce problems like Mismaz. GOM’s suggestion will be discussed in the next meeting of GST Council. The government’s effort is on implementing reforms as soon as possible.