GST Reforms Needed for Global Competitiveness
A recent PwC report titled ‘Eight Years of GST: A time to reflect, a time to reform’ has emphasized the need for reforms in India's Goods and Services Tax (GST) system to better align with global trade dynamics and attract investments.
Key Recommendations from the Report
- The GST framework should be agile, investor-friendly, and globally competitive to cater to the evolving landscape of international trade.
- Recommends rate rationalisation and broadening of input tax credit eligibility.
- Advocates for the inclusion of aviation turbine fuel and natural gas under the GST.
- Suggests transitioning from a four-tier rate structure to a three-tier rate structure to reduce disputes and enhance tax certainty.
GST Collection Milestones
According to government data, gross GST collections have doubled over five years, reaching an all-time high of ₹22.08 lakh crore in the 2024-25 fiscal year, compared to ₹11.37 lakh crore in FY21.
