New Delhi: The central government is now going to give a big relief to the common people as well. It is expected that items like readymade clothes and food items can become very cheap. The reason for this is that the government is going to reduce the burden of GST on businessmen, a proposal that has also been approved by the Union Cabinet. The central government is considering implementing GST in two slabs: 5 per cent and 18 per cent.
For this, the government has also made a complete plan. In the meeting of the Group of Ministers on 20 and 21 August 2025, it was decided to abolish the 12 per cent and 28 per cent GST slabs, which were approved by the cabinet. According to some important reports, the government is considering bringing textile and food products into the tax slab of 5 per cent.
These things are expected to come in a 5 per cent GST slab
According to information received from sources, many big changes are likely to happen in the new tax slab. Consideration from textiles, food, to seams. Under the Next Generation GST Reform, food items and textiles can be included in the 5% GST slab to reduce the tax burden on the common man.
If this happens, then there will be a decline in the prices of all these things, which will also benefit the customers. According to a media report, the central government is also evaluating GST rates on some commonly used services. After this, the rate of 18 per cent can be reduced to 5 per cent. This proposal is likely to be discussed in the GST Council meeting to be held early next month.
How much GST can be imposed on big cars?
For information, let us tell you that construction and infrastructure across the country have been demanding this for a long time. Along with this, if we look at other possible changes, then GST on term insurance and health insurance policies is expected to be abolished. Along with this, 18 per cent GST can be imposed on vehicles smaller than 4 meters.
There is a possibility of imposing 40 per cent GST on bigger vehicles. At present, GS applies to clothes. 5% GST is also levied on unbranded sweets. Whereas branded and packaged sweets come under the ambit of 18% GST.