The 56th meeting of the GST Council to be held on 3 and 4 September in Delhi can bring great relief for the common people. According to sources, the council’s agenda includes a proposal to cut GST rates on about 175 items. These include food and drink, from food items, insurance premium, TV, AC, fridge, washing machines, cement, cars and bikes.
What can be cheaper?
Health and Insurance: Proposal to remove GST on health and life insurance premium for individuals.
Medicines: Recommendation to free more than 30 medicines used in the treatment of serious diseases and cancer.
Consumer Durables: Proposal to reduce GST from 28% to 18% on TV, AC, fridge, washing machine and cement.
Auto Sector: GST on cars, bikes and auto parts is also likely to be 18%.
Textile and Daily: Use products: GST on clothes, footwear (up to Rs 2500), tractor, tires, shampoos, oil, soap, toothpaste and medical equipment can be reduced to 5%.
Hotel Industry: Proposal to tax 5% tax on hotel room rental up to Rs 7500.
Green Products: The rates can also decrease on solar cooker, solar heater and energy efficient products.
Talk will be at two main rates
There is also a big change in tax structure. The GST Council is considering keeping just two main rates, 5% and 18%. However, the current 12% and 28% rates can be eliminated. It is proposed to impose tax up to 40% on SIN, luxury and demerit goods, which can also be imposed additional duty.
Where can the burden increase?
It is also proposed to increase tax rates on some services and products, including chemical wood pulp and paperboard, oil and gas mining services, business and premium class air tickets.
Experts believe that the decisions taken in this time meeting will directly affect the common man’s pocket and the cost structure of the industry. While bumper cuts in GST rates will give great relief to common consumers, insurance and health sector can also be encouraged.
PM Modi’s announcement of gift on Diwali
The meeting of the GST Council to be held on September 3 and 4 is also being linked to Prime Minister Narendra Modi’s statement given to the ramparts of the Red Fort on Independence Day, in which he promised to give a big gift to the countrymen before Diwali. It is believed that possible cuts in GST rates are the Diwali gift that the government can give to the general public to provide relief and promote consumption in the festival season.
These are the apprehensions of the states with the opposition government
While the central government and many states are considering the reduction in GST rates to the general public, some opposition ruled states have also expressed objections on it. He argues that large scale tax deduction will affect the revenue of the states and increase the financial deficit. Such states say that making such a huge reduction in rates without alternative revenue sources can make the economic situation of the states challenging.
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