Prime Minister Narendra Modi on Monday chaired a high-level meeting, which included top Union ministers, secretaries and economists, to deliberate on the roadmap for next-generation reforms, one of the key announcements he had made in his August 15 address.
Union ministers Rajnath Singh, Amit Shah, Nitin Gadkari, Nirmala Sitharaman, Shivraj Singh Chouhan, Piyush Goyal and Lalan Singh attended the meeting. Senior bureaucrats from different ministries and economists were present too.
He had announced on August 15 the formation of a task force for ‘next-generation reforms’ and revision of GST laws, as he devoted a major part of his 103-minute speech to highlight the goal of making India self-reliant in a host of sectors ranging from semiconductors to fertilisers.
GoM meet
Finance minister Nirmala Sitharaman will attend a two-day meeting of the Group of Ministers (GoM) on GST rate rationalisation, where the Centre will formally present its proposal for sweeping tax reforms. This meeting is scheduled for August 20-21. If endorsed by the GoM, the proposal will be placed before the GST Council, chaired by Sitharaman, at its meeting next month.
Although the Centre is not a member of the GoM, Sitharaman will help explain the rationale behind the plan. “Her address will help members understand the Centre’s thinking on the proposed reforms,” a source said.
The reforms come as the levy period for the GST compensation cess nears its end and pressure mounts to address duty inversion affecting several industries. A separate exercise is also underway to ease rates on health and life insurance premiums, an issue to be discussed alongside the broader rationalisation.
Bihar deputy chief minister Samrat Choudhary convenes the GoM on rate rationalisation as well as insurance, while minister of state for finance Pankaj Chaudhary leads the panel on compensation cess.