At a pivotal moment for the Indian economy, Finance Minister Nirmala Sitharaman has signalled a potential reduction in Goods and Services Tax rates. This move is likely driven by a confluence of factors—dwindling domestic demand, export challenges, inflationary concerns, and geopolitical uncertainties.The GSTregime, designed to streamline compliance and unify indirect taxation, was a transformational reform. However, its effectiveness is now under scrutiny. Recent data reveal a concerning trend: net GST receipts grew by only 3.3% in December 2024, despite a 7.3% increase in gross GST collections. This stagnation has reignited discussions on rate adjustments to reinvigorate economic momentum.
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