February 11, 2025
Rajya Sabha MP Md Nadimul Haque’s supplementary questions on a) studies by the government to justify inter-GST slab commodities movements based on perceived-use characteristics, and b) steps to ensure a uniform taxation policy within a four-digit HSN code classification
Sir, in the General Budget discussions and also through a letter written by our hon. Chief Minister of West Bengal, we have asked whether there is a plan to scrap the 18 per cent GST on health and life insurance premium. This is very important. But my question is whether the Government, in its pursuit of enhancing GST compliance, has considered the disproportionate compliance burden imposed on businesses, especially SMEs, through measures such as mandatory ITC reversals linked to supplier credit notes and the ambiguity surrounding the taxability of vouchers. If not, what are the reasons for disregarding the operational challenges and financial strain these policies may create? My second supplementary is that currently, GST compliance is a nightmare for businesses due to the different and arbitrary tax slabs on various commodities. We saw an example of this when the hon. Finance Minister held an entire press conference to explain the difference in taxation on normal popcorn versus caramel popcorn. Please state whether the Ministry has any plans to reform the complicated GST structure by reducing the number of tax slabs, thereby ensuring ease of doing business, as has been done with income tax slabs.
