India considers cutting GST rates

According to media reports, the Indian government is planning to reevaluate its goods and services tax rates in the light of a shortfall in tax revenues.

India introduced the goods and services tax on July 1, 2017 as an indirect tax on manufacture, sale and consumption of goods as well as services.

However, traders operating in India voiced their concerns about the ongoing uncertainties regarding the issue as well as the higher tax rates imposed on certain goods and sought lower GST rates.

Accordingly, India increased GST on PVC and polymers from 5% to 18% on July 1, slumping trading activities after the implementation.

The government is currently seeking to reduce the taxes and boost consumption to increase consumer goods and the retail sector by revising the rates, the media reported.