Eliminating the 12% slab could deliver several tangible benefits. For one, it would reduce ambiguity for businesses, especially MSMEs, and make it easier to classify goods and services correctly, suggests AKM Global’s Sandeep Sehgal.
The introduction of the Goods and Services Tax (GST) in July 2017 was a landmark reform in India’s indirect tax regime. By merging a patchwork of central and state taxes into a unified system, GST aimed to create a seamless national market, simplify tax administration, and enhance compliance. While it has made significant strides in these areas, one persistent concern continues to haunt stakeholders—the multiplicity of tax slabs. Amongst them, the 12% slab increasingly appears redundant, prompting a renewed discussion: Is it time to remove the 12% GST rate?
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