Page 61 - Mann Ki Baat English

economic first-principles that
focusses on efficiency. The
transition to this simplified
structure was the original plan
once the GST system stabilised.
The implementation got delayed
due to COVID-19 disruption and
subsequent economic recovery
phase, requiring system stability
before transitioning to the new
framework initially envisioned.
This shift to the new framework
has happened in the following
ways.
First, the GST slabs have been
consolidated from a four-slab the system. By having fewer
structure to a dual-rate system moving parts in the system,
(5 per cent for merit goods and the streamlined structure
18 per cent for standard goods), removes confusion and curtails
with a 40 per cent rate for a opportunities for rent-seeking.
select few sin and luxury goods, Second, the reform focusses
minimising complexities that on logical allocation of goods
have plagued the system since to appropriate tax slabs based
its inception. The consolidation on economic principles and
of 516 items under the 5 per nature of the good, instead of
cent merit rate and 640 items rates perpetuated by legacy.
under the 18 per cent standard Merit goods that serve essential
rate significantly simplifies consumption needs or have

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