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GST Rate Cut: Finance Minister Nirmala Sitharaman has indicated a cut in GST rates in Mumbai. The Finance Minister said that the work of simplifying the GST rates and slabs is now reaching the final stage. He said that after the completion of the work of rationalizing the tax slab, the GST rate will decrease further, which will give great relief to the taxpayers. & Nbsp;
RNR will be done and less
According to a report by Business Today, Finance Minister Nirmala Sitharaman said that the Revenue Neutral Rate (RNR) was 15.8 % in 2017, which was reduced to 11.4 percent in 2023. It will be reduced further. He indicated a big relief on tax in the coming time and said that industries and traders will get the benefit of tax simplification. With this, if tax is reduced, then things will also be cheap, which will benefit consumers. The tax burden on startups and MSMEs will also be reduced to a great extent. & Nbsp;
What is revenue neutral rate?
Revenue neutral rate means the rate on which changes in tax rates have no effect on the income of the government. That is, the speed of the country’s economy at the revenue neutral rate remains without any change. Revenue neutral rate low means that no effect of reducing tax rates will not affect the government’s revenue neutral rate.
Relief can be found in tax
Let us know that a Group of Ministers (GOM) was formed by the GST Council headed by Finance Minister Nirmala Sitharaman in September 2021, including Finance Minister of 6 states. Their job was to recommend GST slabs and changes in rates. The Finance Minister said that the GST Council meeting will be considered to reduce tax rates. In such a situation, the government may reduce tax slabs in the coming time. Currently, the number of slabs is four- 5 percent, 12 percent, 18 percent, and 28 percent. Its number can be reduced to 3. & nbsp;
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