Assam Backs GST Reform Proposal for Simplified Tax Structure

Support for GST Reform

Guwahati, Sep 4: Chief Minister Himanta Biswa Sarma has expressed the state's endorsement of the Central Government's initiative to streamline the Goods and Services Tax (GST) into two tax slabs: 5% and 18%.

During the 56th GST Council meeting, led by Finance Minister Nirmala Sitharaman and attended by state ministers, discussions commenced on the proposed 'next-gen GST' reforms aimed at reducing tax rates on essential goods, addressing duty inversion in sectors like textiles, and simplifying compliance for micro, small, and medium enterprises (MSMEs).

"Assam is in full support of the Prime Minister's initiative. We advocate for the GST to be simplified to just two rates of 5% and 18%," Sarma stated to the media.

In a subsequent social media update, Sarma reflected on his experience with GST over the past eight years, particularly during his time as Assam's Finance Minister, calling this development a pivotal moment.

"The newly agreed framework will act as a significant catalyst for the Indian economy, enhancing the agility of small and medium enterprises, fostering job creation, boosting consumption, and importantly, allowing more disposable income for our citizens," he noted in his post.

Assam's Finance Minister Ajanta Neog is representing the state at the meeting in the national capital.

"We are fully committed to supporting the central government's initiative. The Prime Minister's directives should be put into action," Sarma added.

The GST Council is set to deliberate over the next two days on the proposal to reduce the number of GST slabs to two, eliminating the existing 12% and 28% rates. Additionally, a special tax rate of 40% has been suggested for certain items, including tobacco and luxury goods.

Prime Minister Narendra Modi introduced the GST reform plan during his Independence Day address on August 15, following which the central government provided a reform blueprint to a Group of Ministers (GoM) from various states for preliminary review.