The Goods and Services Tax (GST) Council, led by Finance Minister Nirmala Sitharaman, is meeting today with high hopes from traders and businesses. During its 56th GST Council Meeting, the Council is expected to discuss moving to a simpler two-slab system and possible rate cuts that could lower the prices of many goods and services as the season approaches.
GST Council Meeting Provide Diwali Gifts by Cut prices
Prime Minister Narendra Modi mentioned earlier that traders might receive a “Diwali gift” in the form of GST changes. It consists cut tax rates across various categories. The Council, which has state and Union Territory finance ministers, will review the current four-slab system of 5 %, 12 %, 18 %, and 28 % to create a simpler structure.
Proposals being discussed show that items currently taxed at 28 % could drop to 18 %. Those in the 18 % category that reduce further to 12 % or even 5 %. Goods and services would be categorized as ‘merit’ or ‘standard,’ with the lower rate applying to the latter. A special “sin tax” of 40 % will remain for a limited list of products, including tobacco and luxury cars.
Sectors That Could Gain
The sectors the gains from the GST Council Meeting and announce reduction in prices are
- Automobiles
- Hospitality and Entertainment
- Healthcare
- Daily use goods
- Agriculture and Fertilisers
- Textiles
- Solar cooker
- Stationery
- Toiletries
- Umbrella
- Hotel booking
Read also: Meet of State Finance Ministers Panels on 20-21 August to Discuss GST Rationalisation