On Sunday, Mr. Arun Jaitley – Finance Minister informed that GST rates may be slashed down once the revenue side starts showing improvement. Currently, the GST regime slots items under rates of 5, 12, 18 and 28 per cent with additional GST cess levied on certain items.

Many of the sectors such as Trade bodies, Telecom sectors have been demanding for reconsideration of higher rate slab of GST from the GST Council. 

“We are in first 2-3 months (of GST implementation). We have space for improvement and need for improvement to reduce compliance burden as far as small taxpayers are concerned,” said Jaitley.

“We have space for improvement, eventually once we become revenue neutral, to think in terms of bigger reforms such as lesser slabs, but for that we have to become revenue neutral…,” he added.

Finance Minister said it is always the effortof the Government to bring down tax rates on mass consumption commodities. “Direct tax is paid by more affluent, somewhat by the others and certainly not by the weaker section, but the impact of indirect tax places burden on all. Therefore, an effort is always as part of the fiscal policy… to ensure that the commodities which are consumed more by the common people are least taxed compared to others,” he said.

Jaitley said that in a non-tax compliant society, when people demands development they should be ready to pay the price for the development. Addressing the 67th batch of Indian Revenue Service (IRS) officers, Jaitley said revenue is the lifeline of Governance and all the developmental activities. “You don’t have to extort taxes from those who are not liable to pay. As tax people, you are not entitled to invite fear, you have to invite a respect that you are somebody who (wants) people to comply with national duty,” he said. The FM also said there are never grey areas in taxation law and it is duty of tax officer to be firm and fair.

Sources –The Pioneer

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