The 46th GST Council meeting is set for Dec 31, with rate rationalisation on the agenda. India’s current four-tier structure (5, 12, 18, 28%) and separate cess on luxury and demerit items are facing calls to merge the 12% and 18% slabs and possibly move some items out of the exempt category to balance revenue impact.
India is weighing GST rate rationalisation to simplify the current four-slab structure, with talks that may consolidate rates and even remove the 12% slab. Officials must, however, balance lower tax burdens on essentials with the need to protect revenue collection. The final design will depend on how much simplification is feasible without triggering shortfalls.
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