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GST at Eight Years: Reform Wish-List for GST 2.0

1 July 20251 min read
ECONOMYGST at Eight Years:Reform Wish-Listfor GST 2.01 July 2025safalsetu.com

Why in the news

Eight years after launch, tax experts praised GST but asked for simpler rates and procedures.

Key facts

  • Past gains: one tax replacing a multi-state maze, uniformity across States, e-invoicing.
  • Slabs: 0%, 5%, 12%, 18%, 28% plus special 0.25%, 1%, 3%.
  • ITC restrictions cause confusion and litigation.

Reforms sought

AreaSuggestion
Fuel and electricityBring inside GST to curb cascading
SlabsFewer rates
ITCMore liberal, transparent
AppealsSet up GSTAT; PwC urges faster redressal

Exam angle

  • Special rates: 0.25%, 1% and 3%.
  • Body to approve fuel inclusion: GST Council.

Test yourself

1. Which products were described as still outside GST in the notes on GST 2.0?

Fuel items such as petrol, diesel, ATF and natural gas remain outside GST.

2. Approval of which body is required to include fuel under GST?

Including fuel needs GST Council approval.

3. The absence of which body was cited for delays in GST appeal resolution?

The GST Appellate Tribunal (GSTAT) was not in place, delaying appeals.

This topic is part of Daily Current Affairs 1 July 2025 (15 topics).

All topics of the dayDay quizJuly 2025

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