GST rationalisation and structural reforms were aimed at making aspirational goods affordable to people, said K. Balasubramanian, Joint Secretary, Department of Revenue, Ministry of Finance, Government of India.
He was speaking at a workshop on GST 2.0 – Unfolding the Next Era of GST: Simplification, Technology & EODB, organised by Bangalore Chamber of Industry and Commerce (BCIC) here on Thursday.
“The government has announced broad GST reforms effective from September 22, focusing on three pillars: structural reforms, rate rationalisation and process improvements,” he stated.
Mr. Balasubramanian said the exercise focused on structural reforms to resolve long-standing issues, such as inverted duty regimes in sectors like fertilisers and textiles, while simplifying the tax code by consolidating the 12% bracket into a lower 5% merit rate and the 28% bracket (for non-cess items) to 18%. “This rationalisation aims to make aspirational goods affordable,” he said.
D.P. Nagendra Kumar IRS, former Member, GST, Central Board of Indirect Taxes and Customs (CBIC), emphasised that the significant growth in revenue, with monthly collections now reaching approximately ₹1.85 lakh crore, was “purely on account of the economic efficiency of the tax collection” rather than rate increases.
Published – September 18, 2025 09:14 pm IST
