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Pitching for the simplification of Goods and Services Tax (GST) structure, the Confederation of Indian Industry’s (CII’s) President Sanjiv Bajaj has suggested that electricity as well as fuel should be brought under the GST ambit as that will help make the industry more competitive. He also suggested that the number of tax slabs under the GST should be brought down to three. Further, he said there is justification for keeping sin and luxury goods in the highest slab.

The president of the industry body said ‘we believe there is (scope for) simplification to probably three slabs. Now that five years have gone and there is experience over there, is what makes sense and that is something that should be deliberated upon’. Besides the exempted category, GST is levied at 5 per cent, 12 per cent, 18 per cent and 28 per cent. There are separate tax rates for gold and precious and semi-precious stones.

On rupee movement against the US dollar, Bajaj said strong forex reserves helped the Reserve Bank of India (RBI) to intervene when required to at least check volatility. He said ‘we believe that eventually the rupee must find its own level and that is a reflection of our own competitiveness but the volatility is what needs to be moderated as RBI has been trying to do’. About high inflation, he said the government has already taken a number of actions to reduce inflation on the ground. He also exuded confidence that the country would witness ‘solid growth’ gradually coming back.