GST Council Meeting: The GST Council meeting is going to start today, on which all eyes are fixed. This time, extensive reforms are expected to be made in the GST structure. It is being speculated that some major changes are being made in the GST slab. This can make the products used daily very cheap.
With the reduction of the GST slab, common customers, along with businessmen, are also likely to get a big benefit. Union Finance Minister Nirmala Sitharaman will also attend the GST Council meeting. GST slab can be reduced from 4 to 2. Meaning the 28 to 12 per cent tax slab can be abolished. There is also a possibility of changes in the current 12 per cent tax slab on more than 2250 items.
What changes are possible in the tax slab
A surprising decision can be taken regarding the tax slab in the GST meeting to be held on Wednesday. About 223 things can be kept in the 5 per cent slab. Apart from this, the rest are likely to be kept in the 18 per cent slab.
Around 30 items can be brought under the 18% slab from the 8% slab. Products on which tax can be levied at less than the current 28% include vehicle parts, air conditioners, televisions, motorcycles, lead-acid batteries, etc. Customers will benefit from this on a large scale.
Will the items become cheaper?
The textile traders have their eyes set on this meeting. There is a possibility of clothes being included in the 5% GST rate. In this way, GST rates on food items can also be reduced. Apart from these, GST slabs on cement are also expected to be reduced. At present, 28% GST can be levied, which can be reduced to 18%.
There is a possibility of GST being abolished on term insurance and health insurance as well. GST of 18% is expected to be implemented on vehicles up to four meters. At present, 28% GST has to be paid. 22% cess is also levied. This is the reason why, at present 50% tax has to be paid on vehicles. If the GST rate is made 1 per cent, then the total effective rate can be reduced to 40 per cent.