Towards good and simple

Govt must remove operational hurdles plaguing GST

Finance Minister Arun Jaitley has hinted that the goods and services tax (GST) regime could be further rationalised once the indirect tax structure becomes revenue-neutral. Such a rationalisation could result in fewer tax slabs and, possibly, lower rates. For instance, as Mr Jaitley mentioned in a Lok Sabha discussion in August, there is scope for merging the two tax rates – 12 per cent and 18 per cent – into a single bracket in such a manner that it does not lead to increased inflation. At present, the GST structure has five slabs – 0, 5, 12, 18 and 28