GST framework promoting uniform thresholds, aligned exemptions, phased unified rates and simplified compliance for broader tax base.
The document outlines establishment of a Direct Tax Code incorporating time-tested practices to simplify taxes, lower rates and reduce litigation, and a constitutionally enabled Goods and Services Tax implemented cooperatively with States. GST design features include uniform exemption thresholds and aligned exemption lists across central and state components, simplified compliance and compounding provisions for small dealers, a phased multi-rate to single-rate transition for goods and services, and prior deployment of dedicated IT infrastructure through an empowered TAGUP group with Centre-State representation.

GST rate structure phased approach ensures aligned central and state rates at inception and during transition.
The Centre advances a GST framework requiring uniform treatment under CGST and SGST by setting identical exemption and compounding thresholds, aligning exempt lists, and adopting IT-driven simplification via an empowered group to implement a national GST system. It proposes phased, coordinated central and state rate arrangements-beginning with a dual-rate structure at introduction and convergence to a single rate over time-while committing to compensate States for revenue losses from tax subsumptions under mutually agreed formulas and to support State computerisation for GST implementation.