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GST Council may consider rationalising rates: Report

GST Council may consider rationalising rates: Report

The Goods and Service Tax (GST) Council might consider rationalising the rates, finance secretary Ajay Bhushan Pandey has said. The measures may include reducing the number of GST rate slabs, and improvement in IT systems, Pandey told The Economic Times.

"Rate rationalisation, removal of inverted duty structure to reduce friction among trade… at the same time we can have a lesser number of slabs," Pandey told the publication.
Moneycontrol could not independently verify the report.

The finance secretary said the GST Council will have to implement the "most practical option".
During the lockdown, several states complained of delays n compensation payouts.
"The GST compensation law provided that in case if there is a revenue shortfall then the GST Council will decide as to what needs to be done… That is exactly what is being discussed," Pandey told The Economic Times.
In 11 months of FY20, the Centre released over Rs 1.5 lakh crore to states as GST compensation cess payout, the report said.

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