Many major decisions were taken in the 56th meeting of the Goods and Services Tax (GST) Council in the country. The main decision was that the existing four main slabs of GST were approved to reduce two main rates. Slabs of 12% and 28% have been removed. Now only 5% and 18% tax slabs will be applicable. All decisions of the GST Council will be applicable from 22 September. GST has also been abolished on health and life insurance.
GST reduction on about 175 items
The GST Council has also proposed to introduce an automated return filing system, which will make it easier to follow the rules related to GST. GST rates on about 175 items can be reduced, including foods, nuts, salty, readymade foods, jam, ghee, butter, pickle, jam, chutney, automobile, tractor, electronics, AC and refrigerator etc.
Now there will be three slabs of GST
After the 56th GST Council meeting, Himachal Pradesh Minister Rajesh Dharmani said that it has been decided unanimously that there will be three slabs now. The rate of 12% and 28% has been abolished. Luxury items will be taxed at 40%. It is noteworthy that a two -day meeting of the 56th GST Council started in New Delhi today under the chairmanship of Union Finance Minister Nirmala Sitharaman.
Changes in tax rates on shoes and clothes
Many important decisions were taken on the first day of the two -day GST Council meeting. Consumers and industrialists will get relief from changes in tax rates on shoes and clothes. Relief has also been given on MSME registration. All decisions will be applicable from 22 September. According to the Economic Times, earlier items up to Rs 1000 used 5% GST, it was 12% GST on items above it, now only 5% GST will be charged on goods up to Rs 2500. That is, now things will be cheaper than before.
Apart from proposals, amendments were also discussed
Apart from proposals at Goods and Services Tax (GST) rates, amendments were also discussed. Now GST registration time for micro, small and medium enterprises and startups has been reduced from 30 days to only 3 days. Exporters will now get automatic GST refund. This proposal has also been approved, which will make their work easier. The GST Council has agreed to reduce the insurance premium rates, which will make health insurance cheaper. In addition, GST rates on life saving drugs are also expected to decrease.