GST Council Meet: The two-day Goods and Services Tax (GST) Council meeting is being chaired by Finance Minister Nirmala Sitharaman. The meeting will discuss major tax changes, with hopes that certain items may become cheaper, providing relief to the common man. Ahead of the meeting, eight opposition-ruled states reiterated their demand for revenue protection. However, Andhra Pradesh extended full support to the Centre’s proposals, calling the reforms beneficial for the common man and the economy. Here is a list of items that can become cheaper or costlier after the approval of reforms in the meeting.
‘Next-Gen’ GST reform
The Centre has proposed a new GST reform- ‘Next-Gen’ GST reform. The reform aims to simplify the current four-tier tax structure by reducing it to just two slabs — 5% and 18%. This would remove the 12% and 28% brackets that were introduced when GST was launched in July 2017.
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What is likely to get cheaper?
GST is a tax on the things people buy. The upcoming GST reforms will lower this tax. As a result, consumers will benefit by paying less for goods and services. According to a PTI report, everyday essentials significantly more affordable.
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- Medicines
- Groceries (food, fruits, and vegetables)
- Electronics (ACs, TVs, fridges, washing machines)
- Farming tools and bicycles
- Insurance
- Education services
- Some food items may have their GST reduced from 12% to 5%- Condensed milk, tooth powder, dried fruits, frozen vegetables, sausages, pasta, jams, and snacks (namkeens and bhujiya)
- Daily items that could be reduced from 12 per cent slab to 5 per cent- carpets, umbrellas, bicycles, utensils, Feeding bottles, furniture, pencils, handbags made of jute or cotton, and footwear under ₹1,000
Which items are expected to become expensive?
- Items that are proposed to be included under the special 40 per cent slab, such as sin goods
- luxury goods, high-end cars, alcohol, gambling, soft drinks, drugs, fast food, coffee, sugar, and tobacco products
- Fuel products like briquettes, coal, and items made from coal, lignite, and peat may become more expensive
- If the GST on ready-made clothes that cost more than ₹2,500 rises from 12% to 18%, they could become more expensive.