CII President Suggests Streamlining GST to Three Tiers with Reduced Rates

By: Admin
June 17, 2024
Categories: GST Recent News
4 Min Read

The Confederation of Indian Industries (CII) has proposed a simplified Goods and Services Tax (GST) structure with three rates ahead of the 53rd GST Council meeting on June 22, 2024. The CII President, in his first interview after assuming the role, suggested a revision of the current GST rate list, which includes five slabs: 0%, 5%, 12%, 18%, and 28%. He also recommended the inclusion of petroleum products, electricity, and real estate under GST.

Hardeep Singh Puri, the new Union Petroleum and Natural Gas Minister, expressed his intention to work on bringing petrol, diesel, and ATF under GST. The CII President highlighted the need for consensus-building to implement next-generation reforms in state and concurrent domains. He proposed the creation of inter-state institutional platforms similar to GST Councils and further interventions in land, power, and logistics to lower business costs.

For the upcoming Union Budget, the CII President suggested establishing a Green Fund to tackle extreme weather challenges. He advised opposition parties to support the government’s economic growth policies rather than opposing them on every issue.

The CII President outlined a 14-point agenda for the new government, emphasizing continued capital expenditure-led growth and fiscal consolidation. He proposed using part of the RBI’s windfall dividend to increase capital expenditure. He also stressed the importance of developing India’s human capital for inclusive growth and industry competitiveness.

The CII President highlighted the need for quality employment and livelihood generation to meet the aspirations of India’s youth. He suggested launching Employment Linked Incentive (ELI) schemes for labor-intensive sectors and addressing the low female participation rate. He also proposed setting up an International Mobility Authority to track overseas employment opportunities for Indian youth.

Lastly, the CII President emphasized the need to improve the Ease of Doing Business to enhance the competitiveness of Indian industry. He suggested easing the regulatory and compliance burden, simplifying regulatory approvals, and strengthening alternate dispute redressal systems.