New Delhi3 hours ago
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Today is the second day of the 56th meeting of the GST Council released from September 3 to change and improve GST rates. According to sources, in yesterday’s meeting, the council has approved only two tax slabs to implement 5% and 18% to simplify the existing structure.
Currently, 4 tax slabs of GST are 5%, 12%, 18% and 28%. 12% and 28% tax slabs will be removed after new changes. After this, more than 175 daily use items including TV, fridge, clothes shoes will become cheaper.
The decisions taken in the meeting can be announced after the meeting is over today, ie on September 4, under the chairmanship of Finance Minister Nirmala Sitharaman.
The 56th meeting of the GST Council under the chairmanship of Finance Minister Nirmala Sitharaman is going on in New Delhi.
Highlights of tomorrow’s meeting
Clothes and shoes will be cheap: According to sources, the GST rate on shoes and clothes up to Rs 2,500 can be reduced to 5%, which will make these things cheaper to the customers.
Soon registration for MSME and StartupAccording to the report of NDTV, now the time taken in GST registration for micro, small and medium enterprises and startups has been reduced from 30 days to 3 days.
Automatic refund for exporters: Exporters will now get GST refund automatic. This proposal has also been approved, which will make their work easier.
Health insurance and life saving medicines will be cheaper: According to the report of Money Control, the GST Council has agreed to cut the insurance premium rates, which will make it cheaper to take health insurance. In addition, GST rates on life saving drugs are also expected to decrease.
Proposal of automatic return filing: According to CNBC, the GST Council has also proposed to bring automatic return filing system, which will make it even easier to follow the rules related to GST.
Luxury electric vehicles will increase tax: According to the Moneycontrol report, the GST rate on luxury electric vehicles worth more than Rs 20 lakh can increase from 5% to 18%.
In the meeting, the time taken in GST registration for startups has been reduced from 30 days to only 3 days.
New tax rates may be applicable from September 22
The central government can implement the new rates of GST from September 22. The aim of the government is to demand demand and sales in many sectors in Navratri and festive season.
At the same time, the CNBC report stated that the government is appealing to the GST Council to approve the changes in rates with immediate effect.
In fact, the government is worried about the possibility of slowing the pace of sales in many major sectors. For this, she is also working on removing concerns related to the Revenue loss of the states.
GST rates possible on 175 items
According to the Moneycontrol report, official sources have reported that GST rates can be cut on about 175 items. These include food ingredients, almonds, snacks, ready-to-Eat items, jam, ghee, butter, pickle, marmalade, chutney, automobile, tractor, electronics, AC and refrigerator etc.
Sources say that if the GST council accepts the rate cut off from the Group of Ministers (GOM), the average GST rate on all items will come down to below 10%, which is currently about 11.5%.
In the meeting, opposition states have said that companies should not allow profiteering by taking advantage of less tax.
GST deduction benefits to the public, not companies
According to sources, in the GST Council meeting, the opposition states have demanded the security of revenue from the Center and protecting the interests of consumers. Opposition states say that companies should not allow profiteering by taking advantage of low tax. The full advantage of tax cuts should directly reach the customers’ pockets.
Also, they want a clean compensation plan to compensate the damage to the states from the new tax slab. Some BJP ruled states have also expressed concern about the revenue deficit with this change.
What do opposition states want?
When the GST was implemented in 2017, the Center promised the states to compensate the revenue loss for five years. For this, cess was imposed on luxury and sin goods (harmful goods), but this arrangement ended in June 2022. Now the opposition states want 40% of the money from luxury tax to go to the chest of the states, so that their financial condition does not deteriorate.
A total of 33 members of the GST Council are included in the meeting. These include the Finance Minister from the Center, Minister of State for Finance and Finance or Taxation ministers from the states.
GST Council has got approval from a group of ministers
Last week, the Group of Ministers (GOM) accepted the central government’s two -slab proposal. Bihar Deputy Chief Minister Emperor Chaudhary had said on August 21 that the group had approved the proposal of 5% and 18% structure by removing the current 12% and 28% rates.
PM announced GST reforms on Independence Day
Prime Minister Narendra Modi had told the Red Fort on Independence Day that this year Diwali is going to get a big gift. We are bringing Next Generation GST Reforms. Will reduce tax for ordinary people, everyday things will become cheaper, people will benefit greatly.
Prime Minister Narendra Modi announced GST Reforms on Independence Day.
These goods will be cheap: Tax on these will be 12% to 5%
According to the expert, dried fruits, branded salty, tooth powder, toothpaste, soap, hair oil, normal antibiotics, painkillers, processed foods, snacks, frozen vegetables, condensed milk, some mobiles, some computers, sewing machines, pressure cookers, gases will be cheaper.
Apart from these, no electricity water filters, electric iron, vacuum cleaner, readymade clothes of more than 1000 rupees, shoes with a range of 500-1000 rupees, most vaccines, HIV/TB diagnostic kits, bicycles, utensils will also be taxed.
Products such as geometry boxes, maps, globes, glazed tiles, pre-fabricated building, vending machines, public transport vehicles, agricultural machinery, solar water heater also come in 12% tax slab. After approval of two slabs, they will be charged 5% tax.
These goods will also be cheap: Tax on these will be 28% to 18%
Cement, beauty products, chocolate, ready-mix concrete, TV, fridge, washing machine, AC, dishwasher, private aircraft, protein concentrates, sugar syrup, coffee concentrates, plastic products, rubber tires, aluminum foil, temporary glass, printers, razor, manner kitted, dental kitte, dental kitte, dental kitte.
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Read this news too …
1. GST improvement will reduce the impact of US tariffs: Claim- Tax deduction can increase ₹ 5.31 lakh crore, this can support the economy
America’s tariff will not have much effect on India. This claim was made by Fitch Solutions company BMI in its latest report. The report said that the improvement in Goods and Services Tax (GST) will reduce tax rates, which will increase consumption.
This will reduce US tariff pressure. The GST improvement and recent reduction in income tax may increase by ₹ 5.31 lakh crore in consumption. Which is about 1.6% of GDP.
2. GST will finish slabs of 12% and 28%: 5% and 18% slab approval for GOM, this will make it cheaper.
A group of ministers of GST Council have approved the abolition of slabs of 12% and 28% of GST. Now only two slabs of GST will be 5% and 18%. Luxury items will come under 40%. Group of Ministers (GOM) convenor Samrat Chaudhary gave this information. Currently 4 slabs of GST are 5%, 12%, 18%, and 28%.
On the GOM meeting, its convenor Emperor Chaudhary said- We have supported the central government’s proposal, with 12% and 28% GST slab.
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