New Delhi, August 15 . The central government is going to bring a big change in the Goods and Services Tax (GST), under which the current 12 percent and 28 percent slabs will be abolished and only two slabs of 5 percent and 18 percent will remain. This information was given by government sources on Friday.
Government sources said that the proposal sent by the Finance Ministry to the GST Council. In it, only two GST rates – 5 percent and 18 percent are proposed.
This means that the current 12 percent and 28 percent slabs will be abolished in the coming time.
Sources further said that the government has proposed to keep low tax rates on products related to farmers, health and insurance. At the same time, GST on products like tobacco and pan masala can be up to 40 percent.
The GST Council meeting is held in September. In this, a decision is taken regarding the tax rates.
Next generation GST reforms were announced by Prime Minister Narendra Modi on Friday.
Prime Minister Narendra Modi hinted at sweeping changes in the GST system in his Independence Day speech from the Red Fort, saying, “This Diwali, I am going to celebrate a double Diwali for you. The countrymen are going to get a big gift, there will be a huge reduction in GST on common household items.”
Prime Minister Modi stressed the urgent need to review GST rates and called it the “demand of the hour”. He announced, “GST rates will be reduced drastically. Tax will be reduced for the common people.”
Prime Minister Modi has made this announcement at a time when the country has completed eight years of GST implementation, making it one of India’s most important tax reforms since independence. Since its introduction in 2017, GST has integrated the country’s indirect tax structure and significantly improved the ease of doing business, especially for small and medium enterprises.
