GST slabs may reduce to 3 in long-term: Sanjeev Sanyal

KOLKATA: In the long-term, Goods and Services Tax (GST) slabs would possibly come down to a few, in addition to the exempted category, Sanjeev Sanyal, important economic adviser to the finance ministry, on Saturday said.

The 3 slabs could be a low of 5 in keeping with cent, a central 15 in keeping with cent (merging 12 in keeping with cent and 18 in keeping with cent slabs that exist now) and a best price of 25 in keeping with cent, he said here at an interactive session organised by way of the Bharat Chamber of Commerce.

"In the long-term, the GST rates might be squeezed to three as more and more simplification will be done," Sanyal said.

Presently, there are four GST slabs of 5, 12, 18 and 28 in keeping with cent, plus the exempted category which attracts 0 in keeping with cent GST.

He said a bulk of the products would possibly get taxed within the 15 in keeping with cent slab.

Earlier this week, Bihar deputy leader minister Sushil Modi, who additionally heads prime level minister panel on GST, had said that the slabs would possibly come down at some point.

Sanyal, who was once a renowned economist ahead of joining the government, said that after oblique taxes (GST), the government is planning to undertake legal and administrative reforms.

"The inability of the legal system to enforce contracts needs to be addressed and this require reforms. The administrative reforms is also on the government's radar," Sanyal added.

He said there has been a slowdown within the Indian economy however now beginning to recover.