The cabinet committee has given its approval to a proposal put forward by the central government that could lead to major changes in GST rates. The plan includes removing the 12% and 28% slabs, leaving only 5% and 18% intact, potentially making 90% of goods cheaper. This move is aimed at simplifying the GST structure and providing relief to consumers and businesses. However, the final decision still awaits the GST Council’s approval.
One of the members of the cabinet committee, West Bengal’s Finance Minister Amit Mitra, mentioned that ultra-luxury items in the 28% slab could be affected by this change. The proposal is part of the government’s efforts to streamline the GST system and make it more taxpayer-friendly. If implemented, it could lead to a significant reduction in prices for a wide range of products, benefiting the general public.
The decision to revise the GST slabs comes as a response to concerns raised by various sectors about the current tax structure. The move is expected to simplify the tax regime and boost compliance. By reducing the number of tax slabs, the government aims to create a more transparent and efficient tax system that promotes economic growth and development.
Businesses across India are eagerly awaiting the final decision on the proposed changes to GST rates. The potential reduction in prices for goods could have a positive impact on consumer spending and overall economic activity. The government’s focus on rationalizing tax rates reflects its commitment to fostering a business-friendly environment and facilitating ease of doing business.
Overall, the approval of the central government’s proposal by the cabinet committee marks a significant step towards reforming the GST structure in India. The potential changes in GST rates are expected to benefit both consumers and businesses, providing much-needed relief. As the country navigates through economic challenges, such initiatives play a crucial role in promoting growth and stability.
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