New Delhi: From the ramparts of the Red Fort, PM Narendra Modi announced a big gift on Diwali. That gift will be related to GST, about which various speculations have started among the sellers. The central government has created two slabs in the revised system of GST. In this, only two tax rates of 5 to 18 per cent have been proposed.
These rates are expected to be implemented by Diwali. Not only this, if the sources are to be believed, this information has been shared on 15 August, i.e. Independence Day. Not only this, the proposal has also been sent to the finance ministers of the states formed by the central government to rationalise the GST rates.
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In this, a decision has been taken to remove the current rates of 12 to 28 per cent. The most important thing is that the GST Council is likely to meet next month. Many things in it will become very cheap, while some are expected to become expensive.
GST Council meeting next month
The GST Council meeting is expected to be held next month. Ministers will keep time for the meeting by discussing several proposals. In the current situation, zero per cent GST is levied on essential food items, while five per cent GST is being levied on items of daily use.
1 per cent GST has been levied on standard items, 18 per cent on electronics products and services and 28 per cent on luxury and harmful items. If sources in the central government are to be believed, only 55 per cent and 18 per cent rates have been proposed in this revised format, which is ready to replace the existing indirect tax system by Diwali this year.
In his Independence Day address, PM Narendra Modi has also announced a significant reduction in GST rates by Diwali. This can provide great relief to common people and small industrialists.
40 per cent GST on these items
If the proposal is approved by the GST Council meeting, then 9 per cent of the items included in the current per cent tax slab will be included in the 9 per cent tax slab. Now, about 90 per cent of goods and services falling under the 28 per cent tax rate will be shifted to the 18 per cent tax rate under the new system.
If sources are to be believed 40 per cent tax rate will be imposed on only 7 types of goods, and products like tobacco will be included in this. The total rate of taxation will remain at the current 88 per cent. Apart from this, considering online gaming as a source of loss, it is proposed to keep it under the 40 per cent tax rate.