GST Cuts Coming: Nirmala Sitharaman Hints at Significant Tax Relief Ahead

Finance Minister Nirmala Sitharaman announced plans for further GST rate cuts. Speaking at The Economic Times Awards, she highlighted the progress in reducing tax slabs. The Revenue Neutral Rate (RNR) fell from 15.8% in 2017 to 11.4% in 2023, with more reductions expected. The Group of Ministers on GST rationalization, established in 2021, made significant progress. The GST Council, led by Sitharaman and state finance ministers, is close to finalizing key changes. She emphasized the need for a final review before presenting the rationalization proposal at the next Council meeting. The changes include reducing tax slabs, streamlining rates, and addressing industry concerns. Sitharaman also discussed global uncertainties affecting the stock market and the government’s commitment to protecting small and medium enterprises. She reaffirmed the government’s dedication to increasing retail investor participation in public sector banks and safeguarding national interests in trade agreements.