The Central Government’s proposal was accepted in an important meeting of the Group of Finance Ministers (GOM) of the states to rationalize the rates of Goods and Services Tax (GST). The meeting discussed the proposal of the center to reduce the tax slab to 5 per cent and 18 per cent, which the GOM has agreed. The central government has proposed a massive change in GST, which has been said to remove 12 per cent and 28 per cent slabs to keep 5 per cent and 18 per cent of only two rates. Apart from this, a special rate of 40 percent can be applied to items like tobacco and paan masala. In fact, the central government wants to give relief to the common man, farmers, middle class and MSME through changes in GST. Through this, she also wants to simplify the tax system.
New system will be implemented by removing four rates of GST
Six -member ministers headed by Bihar Deputy Chief Minister Samrat Chaudhary have approved the proposal to change the system of 5, 12, 18 and 28 percent of the current four -rates. Now only two rates will be applied instead. It was proposed to impose 5 percent tax on essential items and 18 percent on normal goods. At the same time, a rate of 40 percent will be applicable to some harmful items like tobacco.
What did Finance Minister say on changes in GST
Finance Minister Nirmala Sitharaman had said on the case of GST that rationalizing rates will provide more relief to the common man, farmers, middle class and micro, small and medium enterprises (MSMEs). Also, an easy and transparent tax system will be sure. Let us tell you that currently GST is at the rate of 5, 12, 18 and 28 percent. Eating and drinking and essential items are attached to zero or five percent tax. At the same time, luxury and harmful items are taxed at the rate of 28 percent, on which cess is also levied.
