<p>Rajat Mohan, the Executive Director at MOORE Singhi </p><span class
Rajat Mohan, the Executive Director at MOORE Singhi

In the upcoming Interim Budget, set to be tabled on February 1, Finance Minister Nirmala Sitharaman is poised to adopt a cautious approach regarding significant legislative changes, particularly concerning the Goods and Services Tax (GST), according to insights provided by tax expert Rajat Mohan, the Executive Director at MOORE Singhi.

The tax expert highlighted that as the specter of an election year looms in 2024, Sitharaman is anticipated to prioritize stability while navigating the imperative for necessary procedural adjustments within the GST framework.

In the backdrop of the upcoming 2024 election year, within the GST framework, “we foresee not much changes on the legislative side. However, certain procedural changes with regard to compliance filings are inevitable.” Rajat Mohan, the Executive Director at MOORE Singhi told ETCFO.

According to tax expert Rajat Mohan, the following changes can be expected in the GST framework in the interim budget for 2024. While actual changes to GST require the consent of the GST Council, the budget for 2024 provides a direction and thought process for the next stage of GST reforms.

<p>Here's a list of the top five likely changes in the GST </p>
Here’s a list of the top five likely changes in the GST

Here’s a list of the top five likely changes in the GST

1. Rationalization of GST Slabs:
There has been ongoing discussion about simplifying the GST rate structure by rationalizing the number of slabs. The 2024 budget could include announcements regarding a more streamlined GST rate structure.

2. Inclusion of Excluded Sectors:
The GST Council may consider bringing previously excluded sectors like petroleum or electricity under the GST ambit.

3. Measures for MSMEs and Small Traders:
The government might introduce special measures or relief for Micro, Small, and Medium Enterprises (MSMEs) and small traders, considering their critical role in the economy. This could include easier compliance norms or specific tax benefits.

4. Digitalization Initiatives:
Further initiatives in digitalizing GST processes, like e-invoicing, real-time reporting, and automation of returns, could be announced to enhance efficiency and transparency.

5. Focus on Sector-Specific Issues:
The budget may address sector-specific GST issues, like those affecting the manufacturing, services, or export sectors, providing targeted relief or reforms.

  • Published On Jan 30, 2024 at 02:35 PM IST

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