GST reforms must to align with global trade: PwC
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The goods and services tax (GST) regime is at a critical juncture, requiring reforms to align with global trade dynamics and attract investments, said a PwC report The report, titled 'Eight Years of GST: A time to reflect, a time to reform', highlighted key milestones of the tax system and suggested changes to make it more robust, transparent and business-enabling. "The evolving landscape of international trade, coupled with growing need to attract investments in manufacturing and global capability centre (GCC) sectors, calls for a GST framework that is agile, investor-friendly, and globally competitive," said the report.It recommended rate rationalisation, broadening input tax credit eligibility, covering aviation turbine fuel and natural gas under GST , and shifting to a three-tier rate structure from a four-tier structure as key reforms to reduce disputes and improve tax certainty Gross GST collections doubled in five years to reach an all-time high of ₹22.08 lakh crore in the 2024-25 fiscal year, from ₹11.37 lakh crore in FY21, government data showed on Monday.
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