There will be significant changes in GST, removal of 12% and 28% slabs is being suggested

GST News: At the crucial meeting of the states’ Group of Finance Ministers (GoM), the Central Government’s proposal to streamline the Goods and Services Tax (GST) rates was approved. The GoM has approved the Center’s request to lower the tax slab to 5% and 18%, which was addressed at the meeting. The national government has suggested a significant overhaul of the GST, reportedly eliminating the 12% and 28% slabs and keeping just the two rates of 5% and 18%. In addition, products like tobacco and pan masala are eligible for a special rate of 40%.

By altering the GST, the federal government really hopes to help the average citizen, farmers, the middle class, and MSMEs. By doing this, it also hopes to streamline the tax code.

A new system will be implemented and the four GST rates will be eliminated

Under the leadership of Bihar Deputy Chief Minister Samrat Chaudhary, a six-member ministerial panel has accepted the idea to alter the current four-rate structure, which stands at 5, 12, 18, and 28 percent. It will now be replaced by only two tariffs. A five percent tax on necessities and an eighteen percent tax on miscellaneous products were suggested. At the same time, certain dangerous products, such as tobacco, will be subject to a 40% charge.

What was said by the Finance Minister on the GST change?

Regarding the GST, Finance Minister Nirmala Sitharaman had said that lowering the rates will benefit the average citizen, farmers, middle-class people, and micro, small, and medium-sized businesses (MSMEs). Additionally, a simple and open tax system will be guaranteed.

Let us inform you that the current GST rates are five, twelve, eighteen, and twenty-eight percent. Food and other necessities are taxed at a rate of 0% or 5%. Luxury and hazardous items, on the other hand, are subject to a 28% tax rate, plus a surcharge.