The central government has made a big change in the GST system. According to sources, the Center has proposed tax rates of 5 percent and 18 percent under the revised GST system. A special tax of 40 percent will be levied on luxury and harmful items (such as alcohol, tobacco etc.). 99 per cent of the items included in the current 12 per cent tax slab of GST will be put into five per cent slab in the revised GST system.
40 percent GST on tobacco products
The government hopes that improvement in GST system will promote consumption and compensate for the loss in revenue. According to sources, in the revised GST system, five percent tax will be levied on the daily use of the common man. In the revised GST system, 40 percent GST will be imposed on tobacco products. The total tax rate will remain at the current level of 88 percent. Petroleum products will also be excluded from the new system of GST slab.
GST reform will be brought for double Diwali- PM Modi
The proposed GST reform came a few hours after the statement given by Prime Minister Narendra Modi in the Independence Day address in which he said that GST reforms will be brought for double Diwali. Apart from this, other important announcements were made for the next generation reforms, a task force, an indigenous Sudarshan Chakra Defense System by 2035.
GST council meeting will be held next month
The GST Council meeting headed by Finance Minister Nirmala Sitharaman is expected to be held in September, in which the recommendations of the group of ministers will be discussed to make the rates justified. Essential commodities are not taxed in the existing four slabs of GST or they are kept in the slab. In contrast, the most tax is applied to harmful and luxury goods. The Finance Ministry said, “The GST Council will discuss the recommendations of the GOM in its next meeting and every possible effort will be made to implement them soon.”
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