GST Council Meeting Update: PM Narendra Modi had made a big announcement regarding GST reforms in his address from the Red Fort on Independence Day. After PM Narendra Modi’s statement, GST reforms were being talked about till Diwali. But now this time seems to be near. The GST Council meeting, led by Union Finance Minister Nirmala Sitharaman, will start today will last for two days.
In this meeting, surprising announcements can be made regarding GST slabs. The central government can reduce the GST slabs from 4 to two. Apart from this, rates can also be reduced in GST slabs. This will benefit the common citizens as well as the businesspeople. Production tax will also be reduced, and customers will start getting fewer products cheaper price.
Things used every day, like cheese, milk, and even food, can become cheaper. The prices of TV, AC, car and bike are also likely to come down. Small industries will also get a big help from this.
There will be only two slabs, not four.r
This will be the 56th meeting of the GST Council. In this, the four slabs of GST can be reduced to two slabs. Currently, there are four slabs of GST (5%, 12%, 18%, and 28%), but now these will be reduced. Only two tax slabs can be made across the country. There is a complete plan to remove two tax slabs of 12% and 28%. Only two tax slabs of 5% and 18% will remain across the country.
After Narendra Modi’s announcement, the proposal to abolish the 12% and 28% slabs has also been approved in the cabinet meeting. As soon as this proposal is approved in the GST Council meeting, it will be a big gift for everyone before Diwali. There is a possibility of a loss of revenue of about 40,000 crores due to these changes in GST rates. This will bring great relief to the common man.
Know what things will become cheaper?
If the GST slabs are kept at 5% and 18%, then there are many things that will become very cheap. This includes water, milk, namkeen and soap, and oil. Clothes and electronic goods will also become very cheap. With the slab change, the prices of shoes, TVs, ACs, mobiles and cars and bikes will also come down.
In the proposal, there is also a plan to make the products cheaper, whose GST slab is to be brought down from 12% to 5%. These include packaged foods like namkeen, chips, pasta, noodles, jam, ketchup, packaged juice, condensed milk, ghee, etc. Apart from this, the government can include some more products in the scope of the Zero GST slab. It is likely to include items used daily.
What things can be included in the GST slab zero?
The government can also include some more things in the GST slab zero. It can include products used daily. According to a report, UHT milk, pre-packaged paneer, pizza bread, and roti are likely to be included in the Zero GST slab. Along with this, paratha can also be included, on which 18% GST is applicable. At the same time, changes are likely to be made in cocoa-based chocolate, flakes, pastries and ice cream.
These items can also become cheaper.r
In the new GST changes, the prices of education-related items are also likely to become much cheaper. The government can include all education-related items in the GST zero slab. Products like maps, water survey charts, atlases, wall maps, globes, printed educational chartspencil sharpeners, as well as practice books, graph books and laboratory notebooks can be included in the council meeting.
If these are made GST-free, then the literate class will benefit. Currently, a 12% tax is applicable on these. The rates applicable to handloom products, shoes less than Rs 1,000, cement, and ready-mix concrete can be reduced.