Sanjiv Bajaj – Chief of Industry Body, CII – Calls for GST Simplification and Tax Slab Reduction

Touted as a major economic reform when it was introduced, Goods and Services Tax (GST) has recently completed 5 years. With the goal of 'one nation, one tax' being anchored by GST, there have certainly been noticeable improvements in the simplification of tax procedures, reduction of tax evasion, and rationalisation of rates for businesses and corporates during this period. In fact, in March 2022, a mammoth Rs. 1.42 lakh crore was surpassed in the form of GST revenues.

But further simplification must remain on the government's agenda if they are to stabilise one of the world's largest online tax systems. Many influential business leaders and industry visionaries have long echoed this sentiment, including Sanjiv Bajaj – the CII President (Confederation of Indian Industry). 

Let us explore this further and get to know Sanjiv Bajaj and his views from a closer perspective.

Sanjiv Bajaj – CII President 2020: 'GST simplification will make the industry more competitive and reliable.' 

As one of India's most influential business leaders, Sanjiv Bajaj is well known for his honest opinions on driving India's economic and financial growth story forward. After all, as Bajaj Finserv's Chairman and Managing Director, he has an extensive leadership profile among business leaders, thanks to successfully leading Bajaj's foray into the financial services market and emerging as a fintech leader in the country. 

Under his leadership, Bajaj Finserv has been able to innovate its offerings – driven by digital – to bring financial inclusion to the underserved communities and populations of India. Bajaj Finserv is one of the country's most trusted and successful financial services companies. He revolutionised finance in India by making it more tech-driven, customer-centric, and accessible to all – especially for the burgeoning MSME and startup markets in India. 

Serving as the chief of the industry body, CII, Sanjiv Bajaj, therefore, remains the voice of reason and insightful thought leadership in an age where India's financial sector is undergoing massive reform – whether through digitisation or the likes of GST. 

Recently, he pitched that India's Goods and Services Taxes (GST) need to be simplified, and the tax slab must be reduced to better suit the needs of the common man. He advises bringing electricity and fuel under standard GST. According to him, it can benefit our market by making the industry more competitive and reliable for their customers. 

But that's not all! Even the common man benefits from such a decision as costs can be brought under control and might even reduce in the future. The industry inconsistencies result in an inverted tax structure, which should be prevented at all costs. 

According to Sanjiv Bajaj, bringing fuel and electricity under GST will have three major advantages:

• Simplifying the system of taxes for the layman 

• Cutting costs, thus making commodities cheaper and more accessible

• Making the industry more competitive for better quality services

These might not seem like big differences, but they can change the face of the Indian market and the finances of the common man. Further, the CII president 2022 justified keeping the sin and luxury goods in the highest slab. Bajaj believes that simplifying taxes in the form of slabs can benefit the masses by making them more financially aware.

The common slabs of GST levied at present are at 5, 12, 18 and 28 percent. Additionally, there are different tax rates for gold and precious and semi-precious stones. Some others come under the exempted category. 

Conclusion

India is in a great place economically compared to the scenario worldwide. While we have taken many steps together as a country to attain this position, we have a long way to go to be financially secure. Together, the government and the RBI (Reserve Bank of India) are trying their best to keep inflation low to ensure that all segments of society have a certain amount of financial security. 

Brimming with optimism, Sanjiv Bajaj continues to lead the call for GST simplification and tax slab reduction as they will provide further stimulus to the economy while streamlining the already successful tax regime. Ultimately, simplifying taxes is a great way to prevent overcharging and maintain market prices through fluctuations. In the long run, this can help us to cut costs and make the industry more competitive. 

With GST completing 5 years since it was rolled out under the 'one nation, one tax' banner, appeals for further simplification and reduction of tax slabs have been increasing by the day. One of the voices lending their support is that of Sanjiv Bajaj, the President of CII and the Chairman and Managing Director of Bajaj Finserv. As one of India's most influential industry leaders, Sanjiv Bajaj has recently come up with strong suggestions to simplify GST and reduce tax slabs to make the industry more competitive and reliable for customers, along with other benefits. Learn more about his opinions on the same in this blog.