LONG AWAITED GST REFORMS IN INDIA
The article describes five key ideas for transformative **GST reforms** in India, focusing on rationalising tax rates, boosting manufacturing and consumption, and implementing trust-based systems to help industry growth[1].
## Main GST Reform Ideas
- **Rationalisation of Rates**: Simplifying the current multiple GST slabs into fewer, lower tax brackets aims to encourage manufacturing and consumption, making India’s tax system more predictable and competitive internationally[1].
- **Low-cost Housing Incentives**: Promoting affordable housing through GST reductions is expected to stimulate broad economic effects, benefiting various sectors and driving GDP growth[1].
- **Trust-Based Tax System**: Shifting towards a taxation approach based on trust rather than suspicion encourages greater compliance and less adversarial relationships between businesses and authorities[1].
- **Cheaper Goods, Boosting Demand**: Reducing GST rates will lower prices for consumers, enhance demand, and benefit MSMEs (Micro, Small, and Medium Enterprises), especially export-oriented ones[1].
- **Stable and Predictable Tax Policy**: Establishing a clear, consistent GST policy helps industries plan and invest with confidence, reducing uncertainty and fostering long-term growth[1].
## India’s Positioning
India is poised to become more competitive globally with these **GST reforms**, joining countries with lower-to-moderate tax regimes, thus attracting more investment and boosting economic confidence[1].
SOURCE THE TIMES OF INDIA