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GST could see major overhaul; reducing tax slabs, pruning exempt list on table

GST could see major overhaul; reducing tax slabs, pruning exempt list on table

India could be eyeing a significant revamp of the goods and services tax (GST) structure as the regime completes five years in July next year when compensation to states is set to come to an end. Tax slab restructuring and reducing exemptions could be considered in the most comprehensive makeover of the single tax that was rolled out on July 1, 2017.

The new regime may have just three major tax rates covering most of the items against four now - 5%, 12%, 18% and 28%. The recast will seek to simplify the regime as well as lift revenue.

A group of ministers (GoM) headed by the Karnataka chief minister is likely to meet soon to finalise its recommendations that could be taken up at the next GST Council meeting.

"At the last GST Council meeting a presentation was given on various revenue scenarios... It is for states now to see how they wish to tackle the situation post July," said a senior government official detailing the major items on the agenda.

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