To simplify the tax system in the country, the government is preparing to implement the new GST tax slab (change in GST rate) from 22 September. This date matches Navratri (22 September to 2 October), which is expected to provide relief to customers in festive purchases. The new slab may reduce tax on essential items, which will benefit the general public. Experts believe that this will promote the economy and also benefit small businesses. The government may soon make an official announcement.
What is changing?
Currently GST has four slabs – 5%, 12%, 18%and 28%. Under the new proposal, it will be reduced to two slabs of 5% and 18% in GST structure. Merit Goods i.e. essential commodities will come in 5% slab. 18% slab will include standard goods and services. In addition, up to 40% will be especially imposed on ultra-wooden cars and sin goods. Also read – GST improvement: GST on insurance premium may end! Government’s further preparation; Insurance companies shares
When will the decision be decided?
The GST council is scheduled to meet in Delhi on 3-4 September, in which Finance Minister of the Center and all the states of the country will participate. There will be a final discussion on new rates in this meeting. Notification will be issued 5-7 days after the verdict and can remain in effect till 22 September.
What is the motive?
The government says that this improvement will make the tax structure easier. This will provide relief to the middle class and MSME and will help increase demand during festivals. On 15 August, Prime Minister Narendra Modi described it as “GST 2.0 next generation tax improvement”. He claimed that this would benefit farmers, middle class and small businesses.
What will be the benefit of you?
If the new structure is applied, taxes on everyday goods and essential services may decrease. At the same time, non-essential and luxury things can be expensive. From September 22, the implementation of GST 2.0 will affect both the market and the common consumer.
During festivals, electronics, clothes and everyday things can be relieved, but the prices of luxury things will increase.
