GST slabs may reduce to 3 in long-term: Sanjeev Sanyal

In the long-term, Goods and Services Tax (GST) slabs may come down to three, in addition to the exempted category, Sanjeev Sanyal, Principal Economic Adviser to the Finance Ministry, said.

The three slabs could be a low of 5 per cent, a central 15 per cent (merging 12 per cent and 18 per cent slabs that exist now) and a top rate of 25 per cent, he said at an interactive session organised by the Bharat Chamber of Commerce.

"In the long-term, the GST rates might be squeezed to three as more and more simplification will be done," Sanyal said.

Presently, there are four GST slabs of 5, 12, 18 and 28 per cent, plus the exempted category which attracts 0 per cent GST.

He said a bulk of the goods might get taxed in the 15 per cent slab.