The GST Council may look at rationalising tax rates on some items on the basis of merit after ensuring right balance with revenue mop up, Finance Minister Piyush Goyal said.
Ruling out a single rate GST, Chief Economic Advisor Arvind Subramanian today pitched for a three rate structure going forward as revenues stabilise.
The Goods and Services Tax Council may consider a reduction in tax rates on a host of items with low revenue implications as part of the tax rationalisation exercise in its next meeting on July 21.
The GST Council is working towards rationalising GST rates, Minister of State for Finance, Shiv Pratap Shukla said
Having failed to get any respite from the GST Council, MRO industry has decided to approach the PMO for a reduction in the tax burden on the sector, currently levied at 18 percent.
Manufacturers in the country have a positive outlook for the sector in the January-March quarter on the back of higher production, a report by industry body FICCI said.
Arun Jaitley said that India being a "significantly tax non-compliant" country, with wide socio-economic diversities, it cannot have a single GST rate in near future.
GST Council decided to slash rates on 29 items, mainly handicrafts, to zero per cent, according to Uttarakhand Finance Minister Prakash Pant.
GST Council member Sushil Modi said he is in favour of letting the tax revenues stabilise before the panel considers merger or further rationalising of slabs.
The Nikkei India Manufacturing Purchasing Managers' Index (PMI) rose from 50.3 in October to 52.6 in November.