Finance Minister Nirmala Sitharaman on Wednesday said that the central government is committed to build consensus with the states for the next generation reforms in Goods and Services Tax (GST). In his Independence Day speech last week, Prime Minister Narendra Modi had announced lowering of GST rates by Diwali.

During a meeting with the group of ministers (GoMs) under the GST Council held today, Sitharaman said the centre has proposed the reforms with the vision of Aatma Nirbhar Bharat by 2047. 

"The union finance minister emphasised that the proposal by the central government is with a vision to usher in the next generation of GST reforms in India’s journey towards becoming Atmanirbhar Bharat," said a tweet from the ministry of finance a short while ago. 

It may be noted that the central government has proposed a holistic reform of GST, including a dual rate structure of 5% and 18% and doing away with the 12% and 28% GST slabs.

The three-pillar reforms will focus on structural reforms, rate rationalisation, and ease of living. Under rate rationalisation, issues such as inverted duty structure and classification issues will be addressed. 

With the rate rejig, the government aims at providing relief to the common man, as a majority of items will move to the lower rate of 18% and 5%. 

The reforms also focus on ease of living such as seamless registration, prefilled returns and faster refunds. The government is aiming at refunds within three days in majority of cases. The move will come as a huge reprieve to the MSMEs. 

Currently, there are three GoMs under the council on compensation cess, health and life insurance, and rate rationalisation.