HOME > MARKETS > ECONOMY NEWS
  ECONOMY NEWS
ECONOMY
GST Council to soon take decision on having fewer and lower rates: Sitharaman
Feb-05-2025

Finance Minister Nirmala Sitharaman has said that the GST Council will soon take a decision on having fewer and lower rates as the review work is almost complete. She noted that currently, Goods and Services Tax (GST) is a four-tier tax structure with slabs at 5, 12, 18 and 28 per cent. Luxury and demerit goods are taxed at the highest bracket of 28 per cent, while packed food and essential items are in the lowest 5 per cent slab. 

The GST Council, chaired by Sitharaman and comprising her state counterparts, has set up a group of ministers (GoM) to suggest changes in GST rates as well as reduce slabs.  The minister said to be fair to the GST and the ministers who are all in the council, the work on rationalizing and simplifying GST rates has already commenced. In fact, it had commenced nearly three years ago. Days after presenting the Union Budget 2025-26 that also provides significant income tax relief to the middle class, she asserted the country's economic fundamentals are strong and there is no structural slowdown.  

Talking about capital expenditure, she further said the capex has not come down, in fact it has increased to Rs 11.21 lakh crore which is 4.3 per cent of the GDP. For fiscal 2025-26, the Budget proposed to spend Rs 11.21 lakh crore towards capital expenditure (capex), higher than Rs 10.18 lakh crore in the Revised Estimates for FY25. It was Rs 10 lakh crore in FY24, Rs 7.5 lakh crore in FY23, Rs 5.54 lakh crore in FY22 and Rs 4.39 lakh crore in FY21.


  RELATED NEWS >>