NEW DELHI: Finance Minister Nirmala Sitharaman on Wednesday said the next-generation GST reforms is a step towards making India Aatmanirbhar and the central government looks at building consensus with states in the coming weeks.
The Centre's proposal on GST reforms is based on three pillars-- structural reforms, rate rationalisation and ease of living, she said.
During a meeting with GoMs on rate rationalisation, insurance taxation and compensation cess, Sitharaman "emphasised that the proposal by the Central Government is with a vision to usher in the next generation of GST reforms in India's journey towards becoming #AtmanirbharBharat."
The three GoMs will over two days deliberate on the Centre's 'next-gen' GST reforms under which tax will be levied at 5 and 18 per cent rates. A special 40 per cent rate has been proposed on 5-7 items, including sin goods.
"The Central Government remains committed to building a broad-based consensus with the States in the coming weeks to implement the next generation of GST reforms in the spirit of cooperative federalism," the finance ministry said in a post on X.
GST is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either at nil or 5 per cent rate, luxury and demerit goods are in 28 per cent slab, with a cess on top of it.
The finance minister's address to the GoMs was for about 20 minutes during which she elaborated on the Centre's proposal.