GST revamp not dictated by external factors: Ashwini Vaishnaw amid US tariffs

The recent GST revamp with the big-ticket taxation reforms are not influenced by any ‘external factors’, Union Minister Ashwini Vaishnaw said on Saturday, dismissing speculations over the reduction in tax rates on a wide range of goods due to the possible impact of Trump tariffs.

Vaishnaw was responding to a question about whether the Goods and Services Tax (GST) reforms had any direct links with Trump's tariffs on Indian goods. Addressing a press conference at the BJP headquarters in Delhi, Vaishanaw revealed that the preparations for rolling out next-generation GST reforms started around one-and-a-half years ago.

The minister said that the GST reforms are expected to not just improve the tax system but also help transform India's economy in the coming years. Vaishnaw explained that India's tax system was complicated before 2014. Earlier, goods were taxed many times at different stages under various state and central taxes. The government is now simplifying GST by reducing unnecessary slabs, Vaishanaw pointed out.

“The preparation for GST reforms had started about one-and-a-half years ago...before the US elections. This initiative was taken in PM Modi's clear goal to reform, perform, and transform. This GST reform will start a transformation journey for the country. This one-and-a-half-year-long GST reform exercise has now been finalised...In every step, PM Modi has guided us... External factors have no role to play in this next-generation reform,” Vaishnaw said, news agency ANI reported.