Big GST cheer for common man! Two-slab tax structure to replace 5-28% rates
Big GST relief soon! Prime Minister Narendra Modi in his Independence Day speech announced that the Goods and Services Tax (GST) burden on the common man is set to come down from this Diwali with next-generation reforms slated to be rolled out.
PM Modi stressed the need for the next phase of GST reforms, which aim to provide relief to ordinary citizens, farmers, the middle class, and small and medium enterprises (MSMEs).
The ministry of finance has released details on the proposed GST reforms, saying that a two-slab GST structure is being mulled - standard and merit - and special rates on select items. The new GST structure will replace the current 5%, 12%, 18%, 28% slabs. A GST Council meeting is expected next month.
On the 79th Independence Day, Prime Minister Narendra Modi emphasized the significance of the Goods and Services Tax (GST), introduced in 2017, as a major reform that has positively impacted the country.
GST reforms: New slab rates & more - top points to know
To achieve a self-reliant India, the Central Government is planning major GST reforms based on three main pillars:
1. Structural reforms
2. Rate rationalization
3. Ease of living
The government has submitted its GST rate rationalization and reform proposals to the Group of Ministers (GoM) formed by the GST Council for review.
The focus of the next-generation reforms includes adjusting tax rates to benefit all societal segments, particularly the common man, women, students, the middle class, and farmers.
The reforms aim to reduce classification disputes, correct inverted duty structures in certain sectors, ensure rate stability, and improve the ease of doing business. These efforts are expected to strengthen key economic sectors, boost economic activity, and promote sectoral growth.
