GST: Average tax under GST reduced from 15.8% to 11.3%, Finance Minister informed Rajya Sabha

New Delhi| Finance Minister Nirmala Sitharaman told the Rajya Sabha that indirect taxes under the Goods and Services Tax (GST) have reduced significantly in the last few years since its implementation. He said the average tax under the previous indirect tax regime was 15.8 per cent, under GST it has now come down to 11.3 per cent. Responding to a question raised by All India Trinamool Congress (AITC) MP Nadeemul Haq, representing West Bengal, the Finance Minister informed about the reduction in GST rates over time.

“Earlier, everyday items were taxed at 15.8 per cent”, the finance minister said. Now the rates under GST have come down to 11.3 percent.” Sitharaman said that under GST, tax on not a single item has increased, but tax on many items has decreased.

During the session, MP Haq also asked whether the government was planning to simplify the GST structure by reducing the number of tax slabs, similar to the reforms made in income tax. In response, Minister of State for Finance Pankaj Chaudhary said that the GST Council established under Article 279 a of the Constitution is a strong example of cooperative federalism. He stressed that all decisions related to GST are taken by the GST Council, represented by the Finance Ministers of all states.