The GST Council formed a Group of Ministers (GoM) in September 2021 to review GST rate rationalization, aiming to simplify tax slabs, reduce exemptions, and improve compliance. The GoM submitted an interim report, which was reviewed in the 47th GST Council meeting, and no pending proposals are currently under consideration. On financial inclusion, the government has expanded banking services using the Jan Dhan Darshak (JDD) App, ensuring banking outlets are within 5 km of nearly all inhabited villages. As of February 2025, 99.90% of the country’s 6,01,328 villages have access to banking services. Additionally, 107 Digital Banking Units (DBUs) have been established to enhance digital banking infrastructure, following the launch of 75 DBUs in October 2022 as part of India’s 75th Independence celebrations.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
RAJYA SABHA
UNSTARRED QUESTION NO-1997
ANSWERED ON – 18.03.2025
SIMPLIFYING GST STRUCTURE
1997. SHRI K.R.N. RAJESHKUMAR:
Will the Minister of Finance be pleased to state:
a. the pending proposals for simplifying the Goods and Services Tax (GST) structure, including the measures to reduce the number of tax slabs, the plans to remove exemptions and the steps to simplify compliance procedures; and
b. the steps taken to improve financial inclusion and digital banking, including the expansion of banking services to unbanked areas, the growth of digital payment systems and the measures to enhance financial literacy?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): The GST Council in its 45th meeting held on 17th September, 2021, has constituted a Group of Ministers to look into issues relating to rate rationalisation. The terms of reference for the GoM include:
i. review the supply of goods and services exempt under GST with an objective to expand the tax base and eliminate breaking of ITC chain;
ii. review the current tax slab rates and recommend changes in the same as may be needed to garner required resources;
iii. review the current rate slab structure of GST, including special rates, and recommend rationalization measures, including merger of tax rate slabs, required for a simpler rate structure in GST.
The Group of Ministers submitted its interim report which was considered by the GST Council in its 47th meeting.
No report of the Group of Ministers is presently pending for consideration of the Council.
(b): In order to ensure availability of a banking outlet (Bank branch/ Business Correspondent/ India Post Payments Bank) within 5 kilometres of all inhabited villages in the country, the Government has launched a Geographic Information System (GIS) based App., namely, Jan Dhan Darshak (JDD) App.
The endeavor of the Government is to ensure availability of banking outlets (Bank branch/Business Correspondent/ India Post Payments Bank) within 5 kilometers of all inhabited villages in the country. Based on the data uploaded by Banks on the JDD App, as on 28.02.2025, out of total 6,01,328 inhabited villages in the country, 6,00,720 (99.90%) villages are covered with banking outlets (Bank branch / BC / IPPB) within a radius of 5 Km.
Hon’ble PM dedicated 75 Digital Banking Units (DBUs) in 75 districts of the country to commemorate 75 years of independence of our country (Azadi ka Amrit Mahotsav) on 16.10.2022.
DBUs have been introduced to further the objective of improving the availability of digital infrastructure while accelerating and widening the reach of digital banking services. As on January 2025, 107 DBUs have been setup across the country.
