The GST Council meeting has begun. This is the first meeting after PM Modi announced the new GST reform on 15 August. 175 items may become cheaper under this meeting.
The 56th meeting of the GST Council has started today and the decisions taken in this meeting will be announced tomorrow, which is being eagerly awaited by everyone from companies to the common man. Because on August 15, Prime Minister Narendra Modi had made a big announcement from the Red Fort and said that new GST reforms will be brought on Diwali. This is the first meeting of the GST Council after this announcement.
Many big announcements can be made in this meeting of the GST Council. Also, under the new GST Reform to be implemented on Diwali, two tax slabs and things related to the common man can be approved to be made cheaper. Finance Minister Nirmala Sitharaman has also said that the issue of rationalizing the rates is expected to be discussed in this two-day meeting, in which expensive items along with daily use will also be cheaper.
There will be discussion on doing 2 slabsAccording to the Centre's proposal, now there can be only two GST slabs. In this, all the items falling in the 28 percent slab, except the harmful items, can be included in the 18 percent slab and the items of the 12 percent slab can come in the 5 percent slab. There will be another slab of 40 percent, which will be imposed on 6-7 items, most of which will be harmful and luxury items.
175 items may become cheaper
According to the report of Moneycontrol, official sources said that GST rates may be reduced on about 175 items, which include food items, almonds, snacks, ready-to-eat items, jam, ghee, butter, pickles, jam, chutney, automobile, tractor, electronics, AC, refrigerator etc.
Sources say that if the rate cut proposal of the Group of Ministers (GoM) is accepted by the GST Council, then the average GST rate on all goods, which is currently around 11.5 per cent, will come down to below 10 per cent.
Some specific items falling in 12-28% slab- Ghee
- Butter
- Cheese
- Packed frozen vegetables
- Fruit juices (mostly, non-aerated)
- Umbrella
- Solar Water Heater
- Farm equipment
- Air Conditioner
- Cement
- Car/SUV
The group of ministers has proposed that health and life insurance premiums should be kept out of the ambit of GST, meaning they should not be taxed. However, this will lead to a drop in revenue. According to Telangana Deputy Chief Minister Mallu Bhatti Vikramarka, a complete exemption on health and life insurance premiums for individuals will result in an estimated revenue loss of Rs 9,700 crore annually.
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Harshit Raj
