News
GST rate reductions distorted tax structure, says Nirmala Sitharaman at HTLS

The Goods and Services Tax rate structure has become distorted due to a string of rate reductions after the new indirect tax was introduced two years ago, Finance Minister Nirmala Sitharaman said at the Hindustan Times Leadership Summit on Saturday. Once the GST rate was decided and the biggest indirect tax reform launched in 2017, Sitharaman said the GST council went about reducing the tax rate of certain set of commodities.
“And I am not blaming anyone here. Equally all of us went about in every meeting of the GST council to reduce the taxation rate of certain set of commodities,” she said. This, she said, kept on happening.
“At the end of the day, the intentions were good. (but the tax rates) kept reducing, kept reducing. Now reduction per se is not bad,” she added.
“I am not saying that people did it thoughtlessly, but in the enthusiasm to reduce taxes, that framework which was originally agreed at stage one of GST was distorted,” Sitharaman said, explaining that lowering the tax rate impacted the input tax credit and transferred more taxes to the buyer.
Sitharaman’s assessment of the tax structure comes right ahead of the meeting of the Goods and Services Tax Council, the powerful body of state finance ministers led that she heads, later this month that is expected to discuss the first steps towards reviewing the tax rates.
Sitharaman declined to comment on the decisions that the council would take on the tax rates but underscored that a good streamlined GST regime for all assesses would be put in place.
Eventually, she said, the council will have to rationalise the tax structure and asked if it was really necessary to have a large number of slabs. “The original intent was to have three rates, merit, sin and the standard,” she said, underlining that there were “too many complications” in the tax rates.
Sitharaman listed complications in the tax returns that assesses have to file as the second area of focus, asserting that she had told got officials to simplify the forms that she acknowledged, “ended up asking for so much more information”
The minister counted the simplification of GST tax returns that were also distorted as another area that her team is working to fix.
News
Do you want electric buses to operate in your neighborhood too? Send your suggestions here.

Image Source: PTI
A survey is being conducted in Delhi to initiate small-sized electric neighborhood buses on congested roads. The Delhi Transport Department has commenced an extensive ground survey to determine suitable routes for neighborhood bus services in different areas of Delhi. This survey will run from June 1st to June 15th, with 23 technical teams deployed in various locations across Delhi for study purposes.
Transport Minister Kailash Gahlot stated that the Delhi government has never purchased more than 2000 feeder buses before this initiative. The 9-meter buses will operate on routes where 12-meter buses are unable to reach. Delhi residents can also share their feedback and suggestions regarding the neighborhood buses at mohallabusfeedback [at] gmail.com.
To ensure the inclusion of public suggestions, teams have been formed by the Transport Department to gather insights from the people of Delhi. This will guarantee that all significant routes are covered by these neighborhood buses.
The technical teams involved in the survey will visit metro stations, bus terminals, bus stops, and different areas of Delhi. The survey will focus on the following four aspects:
- Assessment of travel demand: The survey teams will examine last-mile connectivity in each area and study the transportation needs of the general public for such connectivity.
- Road network: The survey teams will assess road width, encroachments, and obstacles encountered during bus operations.
- Public transport connectivity: All teams will determine the distance travelers need to cover to reach public transport. A Pakistani team will also investigate the availability of other public transport options in the area.
- Para-transit connectivity: The availability of options such as e-rickshaws, auto-rickshaws, and other para-transit services in specific areas will also be surveyed.
According to the information received from the Transport Department, the data collected during this survey will be digitized. It will be used to determine the origin and destination of proposed neighborhood bus services in each area. Additionally, the survey aims to identify potential routes that will benefit the maximum number of passengers through neighborhood buses.
It should be noted that Kailash Gahlot, Delhi’s Finance Minister, who also serves as the Transport Minister, announced the Neighborhood Bus Plan in the budget speech. The objective of this plan is to deploy 9-meter-long electric buses to provide local or feeder bus services. The Kejriwal government has planned to operate a total of 2,180 such buses by 2025. The neighborhood buses will be specifically operated in those areas of Delhi where road width is limited or regular operation of 12-meter buses is difficult due to congestion.
News
Delhi’s Coolest May in 36 Years: Record-Breaking Temperatures and Abundant Rainfall

Image: PTI
Delhi has recently witnessed a remarkable drop in temperatures during the month of May, marking it as the coolest May in the past 36 years. This significant shift can be attributed to the abundant rainfall that showered the city over the course of two weeks.
Surprisingly, Delhi encountered an unusual 11 days of rainfall, which is quite uncommon for this hot summer month. Data provided by the India Meteorological Department (IMD) reveals that the average maximum temperature recorded in May this year was 36.8 degrees Celsius, the lowest since 1987. It is worth mentioning that in May 1987, the Safdarjung weather station recorded an even lower average maximum temperature of 36 degrees Celsius, according to IMD scientist Kuldeep Srivastava.
To put things into perspective, the average maximum temperature in May last year was a scorching 40.1 degrees Celsius. The stark contrast in temperatures this year can be attributed to the five active western disturbances that affected the northwest plains of India. Srivastava highlighted that while the region usually experiences two to three western disturbances during this period, this year marked the fifth one.
Delhi received a staggering 111 mm of rainfall in May, which was 262 percent above the normal average of 30.7 mm for the month. The city has also witnessed above-normal rainfall in March, April, and May, accumulating a total of 184.3 mm during the pre-monsoon season. This figure represents an excess of 186 percent compared to the average of 64.4 mm.
Furthermore, the Safdarjung weather station did not record any instances of a heatwave throughout May, although other weather stations in the vicinity reported heatwave conditions. The copious rainfall and gusty winds not only provided relief from the scorching heat but also improved Delhi’s air quality. On Wednesday, the Air Quality Index (AQI) was recorded at 85, falling under the ‘satisfactory’ category. In contrast, on May 23, when there was no rainfall, the AQI soared to 198, according to data from the Central Pollution Control Board (CPCB).
Remarkably, data from the Commission for Air Quality Management (CAQM) shows that the average PM10 and PM2.5 levels from January to May this year have been the second lowest since 2016. The lowest levels were observed in 2020 due to the summer lockdown.
In conclusion, Delhi’s unusual weather patterns in May, marked by the lowest temperatures in over three decades and abundant rainfall, have brought relief from the scorching heat and improved air quality in the city.
News
Delhi Government Introduces Small Electric ‘Mohalla Buses’ for Improved Public Transport.

Image: PTI
The Delhi government is taking a big step towards improving the city’s public transportation system by introducing small-sized electric “Mohalla Buses” on the streets. To make sure they identify the areas where these buses are needed and determine the best routes for them, the Transport Department has launched a comprehensive 15-day evaluation campaign. Starting from Thursday, teams of experts will be deployed in different areas until June 15 to conduct the study.
This means that soon we’ll have these convenient and eco-friendly buses operating throughout Delhi! Isn’t that exciting?
But that’s not all! The government has also come up with a plan to purchase over 2,000 feeder buses. These buses will serve routes where the regular 12-meter buses can’t go. So, it will make traveling much more convenient for all the bus commuters out there!
To ensure that they cover all the important areas and connect the major attractions in the city, They are forming teams across Delhi to gather feedback from the people. Their input will help them determine the most suitable routes for these Mohalla Buses. After all, They want to make sure that everyone benefits from this new and improved public transport system!
So get ready, Delhiites! Exciting changes are on the horizon, making your daily commute more comfortable and sustainable.
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