GST Rate Rationalisation

GST has been more of an economic reform than even a tax reform since its rollout in 2017. One of the key sources of difficulty lies in its multi-slab rate structure (5%, 12%, 18%, 28%), which has created pricing anomalies, classification disputes, and compliance challenges. The long-pending proposal for rate rationalisation—merging the four slabs into a simpler three-rate system is likely to be addressed between today and tomorrow (the 3rd and 4th of September) when the GST council meets to discuss the same and to recommend. This paper by J the App by JustIDT analyses the impact areas of the rate rationalisation the contours of which are likely to be released by close of tomoro by way of Council recommendation.