The government has begun fresh discussions to change the Goods and Services Tax (GST) system as per, The Economic Times reports. The aim is to simplify and improve the tax rates.Senior officials said recent high-level meetings were held to explore ways to make GST better. This is happening as India finalizes trade deals with the UK and the US. The government wants to ensure that Indian businesses remain competitive and are not hurt by local tax rules compared to global companies.

GST, launched in July 2017, combined many indirect taxes into one and created a unified market across India. These new talks come after the government proposed a bill in February to simplify income tax laws.The government is seriously considering big changes to the GST system to make it work better for businesses and consumers. Officials believe small fixes won’t be enough and deeper reforms are needed. With the compensation cess (a special tax to help states adjust to GST) ending soon, now is a good time to rethink the tax structure.

The main focus is on the number and types of GST rate slabs. Currently, there are many slabs, which industry groups say cause confusion and make it harder to follow the rules. Experts suggest moving to just three simple slabs, with clearer rules and better enforcement.There are also concerns about how tax officers behave and the complexity of having both central and state governments involved in tax collection and checks.

The GST Council formed a group of ministers to study these changes, but they have not yet agreed on what to do. Some ideas, like dual rates or price limits for luxury goods, could make things more confusing instead of simpler.
Overall, the government wants to make India’s tax system easier and help businesses stay competitive, especially as it signs trade deals with other countries.