GST Rate Rationalisation: ICAI on Compliance & Consumption

New Delhi, Sep 4 (PTI) Chartered accountants' apex body ICAI on Thursday said GST rate rationalisation will help ease compliance for taxpayers and stimulate consumption.

"At the same time, ICAI notes that successful rollout will depend on timely preparedness of GSTN systems, precise notifications/circulars, and clear guidance for both taxpayers and officers in field formations. Equally, anti-profiteering will assume significance in making certain that the benefits of rate reductions are ultimately passed on to end consumers," ICAI President Charanjot Singh Nanda said in a statement.

The Goods and Services Tax (GST) Council on Wednesday decided to rationalise the tax rates and have a two-rate structure of 5 per cent and 18 per cent. The revision, to be effective from September 22, will reduce the prices of a large number of products and services.

The Institute of Chartered Accountants of India (ICAI) President said the GST Council's comprehensive package of rate rationalisation and process reforms is a significant step towards a simpler, more citizen-centric GST regime that should ease compliance for taxpayers and stimulate consumption.

According to Nanda, the government is also focused on rationalising tax rates and resolving inverted duty structures in the textile sector.

"These measures will simplify compliance, enhance profitability, and bring greater transparency to the textile sector, while also boosting exports and making Indian textiles more globally competitive," he added.