The GST reform aims to simplify the indirect tax regime, reduce compliance costs, and address the inverted duty structure. Despite potential inflation and revenue concerns, this reform is crucial for tax administration, formalization, and cooperative federalism.
Click to View MoreThe 56th GST Council meeting approved a simplified two-tier tax structure, scrapping old slabs, to make goods and services more affordable. The "Next-Generation GST Reforms" aim to boost consumption, support key sectors, and streamline the tax system for a more transparent Indian economy.
Click to View MoreThe GST Compensation Cess is an additional tax levied on specific goods and services to compensate states for revenue losses incurred due to the implementation of GST. It was introduced because GST is a consumption-based tax, causing manufacturing states to lose revenue. Initially for five years, its collection has been extended to March 31, 2026.
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