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GST rates and slabs will decrease or increase, GST Council will soon take decision on it – India tv hindi

by Aaryan Srivastav
February 4, 2025
GST rates and slabs will decrease or increase, GST Council will soon take decision on it - India tv hindi

Photo: PTI Finance Minister Nirmala Sitharaman said- The economic foundation of the country is strong and there is no structural recession.

The review work on GST rates and slabs is almost complete and the rates and slabs will decrease or increase, GST Council will soon take a decision on it. Finance Minister Nirmala Sitharaman said this information on Tuesday. According to PTI news, the council headed by Sitharaman and his state counterparts has formed a group of ministers (GOMs) to suggest changes in GST rates as well as to reduce the slab. Currently, four slabs in the Goods and Services Tax (GST) are of 5, 12, 18 and 28 percent. Packed foods and essential items are the lowest 5 percent of the slabs and the highest GST bracket of 28 percent on luxury items.

Asked the ministers to consider more deeply at rates

According to the news, the Finance Minister said that to be fair towards all ministers in GST and Council, the work of rational and simplifying GST rates has already started. In fact, it began about three years ago. Sitharaman said that later its scope was extended and now the work is almost complete. The Finance Minister said that he asked the ministers in the council to consider more deeply at rates as they belong to everyday items consumed by the common people, the minister said that it is important to ensure that the opportunity is not lost.

The country’s economic foundation strong

Sitharaman said that for me, it was also important not to lose opportunity, that we could also reduce the number of rates, which is also the original intention. So it should work on it, and I hope that the GST Council will decide on it soon. A few days after the Union Budget 2025-26, which also provides significant income tax relief to the middle class, the minister stressed that the country’s economic foundation is strong and there is no structural recession. Sitharaman said that there is no proposal to discontinue the old tax system.

No reduction in capital expenditure

On a question related to capital expenditure, the minister further said that the capital expenditure has not decreased, but it has increased to Rs 11.12 lakh crore, which is 4.3 percent of the GDP. For FY 2025-26, the budget proposes to spend Rs 11 lakh crore on capital expenditure (CAPECECs), which is more than Rs 10. 18 lakh crore in the revised estimates of FY 25.

It was Rs 10 lakh crore in FY 24, Rs 7.5 lakh crore in FY 23, Rs 54 lakh crore in financial year 22 and 4. 39 lakh crore in FY1 21. In the budget, the fiscal deficit for FY 26 was judged 4. 4 percent of GDP and the target of FY 25 was reduced by 10 basis points to 4.8 percent of GDP.

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