GST 2.0- Good news for common people. GST 2.0 (GST Reform): It has been eight years since GST was implemented in the country. Meanwhile, Prime Minister Narendra Modi has announced from the Red Fort that this time the public will get a big gift before Diwali. He said that his government is going to bring “Next-Generation GST Reforms “, which will reduce the burden on the pockets of the common man, farmers, middle class and small businessmen.
Tax slabs will be easier
At present, there are four main rates in GST – 5%, 12%, 18% and 28%. For a long time, there was a demand to simplify the structure. Now it is likely that some slabs will be combined and only two rates will be kept. This will make everyday items cheaper and tax compliance will become easier for businessmen.
The GST reforms that are being prepared this time will directly benefit the common people. Items of daily use like groceries, medicines, TVs and even washing machines can become cheaper. Not only this, the cost of farming equipment, bicycles and even services like insurance and education will also be reduced. In simple words, the burden on the pockets of householders and farmers will be reduced, and consumption is expected to increase across the country.
After the reform, most goods and services will be in two categories – 5% and 18%. A new tax of 40% will be imposed on certain goods, which are currently kept under “compensation cess”. After March 31, 2026, this cess will end and the tax system will become more clear.
What will be cheaper?
According to experts, Items taxed from 12% to 5% : Condensed milk, dry fruits, frozen vegetables, sausages, pasta, jam, namkeen, tooth powder, feeding bottles, carpets, umbrellas, bicycles, utensils, furniture, pencils, jute or cotton handbags and footwear up to Rs 1,000.
Items taxed at 28% to 18%: Cement, ACs, dishwashers, monitors, projectors, set-top boxes and LCD/LED TVs.
This simply means that TV, washing machine, home construction material and many household needs will be cheaper than before.
What will be expensive?
The government has considered some products as “demerit items”. These include cigarettes and online gaming. Now 40% tax will be imposed on these. This means their expenses will increase further. Has no effect on Tax on diamonds will remain the same at 0.25%, 3% GST will continue on gold and silver, Petrol and diesel will still remain outside the GST framework, meaning their prices will not change.
The government has sent the new proposal to a group of ministers. From there, recommendations will be prepared and sent to the GST Council, which is headed by Finance Minister Nirmala Sitharaman. It is expected that the council will meet in October and a final decision may come before Diwali.