Union Finance Minister Nirmala Sitharaman conducts the 58th GST Meeting today. The agenda includes rate cuts for 175 items, ranging from cars to soap and air conditioners. It also consists simplifying the current four-tier tax system to two.
Union and State finance Ministers Discussion in GST Meeting
The GST Council meeting gathers union and state finance ministers to focus on GST reforms. This includes rate adjustments, simpler compliance, and possible new compensation methods. An officers’ meeting took place on Tuesday to prepare for the council’s discussions.
A new two-slab structure is proposed. Essential goods would be taxed at 5%, while non-essential items would be taxed at 18%. It replaces the current four slabs, which include 5%, 12%, 18%, and 28%. An additional 40% slab is expected for “sin goods,” including tobacco and cars priced at ₹50 lakh and above.
Rate cuts on 175 Items
India plans to reduce GST by at least 10 % points on nearly 175 items in GST Meeting. However, some specific revisions are eagerly awaited by the public. GST on essential items such as toothpaste, shampoo, talcum powder, and soaps is expected to drop to 5% from the previous 18%. GST on butter, cheese, and ready-to-eat foods like pickles and snacks may also fall to 5% from 12% and 18%.
Overall, almost all food and textile items are anticipated to fall into the 5% slab, benefiting companies like Hindustan Unilever Ltd., Godrej Consumer Ltd., and Nestle India Ltd.
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