GST slab
The government is preparing to simplify the GST (Goods and Services Tax) system. Recently, GOM met, in which it has been agreed to make the GST slab proposed by the Center to be resignable. In this meeting, the finance ministers of the states have supported the existing four slabs to keep only two slabs. This means that now the slabs of 12% and 28% will end and only 5% and 18% slabs will remain.
Now there will be two GST slabs?
This six -member minister, headed by Bihar Deputy Chief Minister Emperor Chaudhary, has decided that GST rates will be divided into only two slabs. It will apply a rate of 5% on good and essential commodities, while most standard goods and services will be taxed at 18%. Apart from this, luxury items will remain in a slab of 40%.
After this decision, about 99% items which were earlier at the rate of 12%, will now come in a slab of 5%. At the same time, about 90% of the items which were in the first 28% slab will be kept at the rate of 18%. This will make the tax system more simple and clear, which will benefit the traders along with the general public.
GOM has also suggested that luxury cars should be taxed at a rate of 40%. Along with this, some harmful items will also be kept in this slab. Finance ministers from Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala have also supported this proposal in GOM. He said that this will bring transparency in the tax system and increase the number of tax payers.
Finance Minister Nirmala Sitharaman’s statement
Finance Minister Nirmala Sitharaman said in this meeting that the general public will benefit by making tax rates resignable. He told that with this new system, the tax system will be simple and transparent. He also informed that this will reduce the tax rate on many goods, which will reduce the prices of goods and provide relief to consumers.