Big change in GST: Now only 2 tax slab, will be cheap everyday things, insurance and relief

The government has made a big change in the GST system to provide relief to the common man, farmers, middle class and MSMEs. 4 tax slabs (5%, 12%, 18%, 28%) have been reduced to only two slabs so far – 5%and 18%. Everyday things and essential services will come in 5% slab, while most of the other things in 18%. Luxury cars and gutkha, alcohol -like “sin wells” will be taxed at 40%. Apart from this, the government is also considering removing GST on health and life insurance – this will directly benefit the general public. This will make the new GST structure system more simple, transparent and development -oriented. The government has made a big change in the GST system to provide relieve to the common man, farmers, middle class and msmes. The 4 tax slabs (5%, 12%, 18%, 28%) Till now have been reduced to only two slabs – 5%and 18%. Daily Essential Items and Essential Services will come under the 5% Slab, While Most of the other items will come under 18%. 40% tax will be left on luxury cars and “sin goods” like gutkha, liquor. The special thing is that 99% of the items with 12% tax will now come under 5%, and 90% of the items with 28% tax will shift to 18%, which will provide a big reliaf in inflation. Apart from this, the government is also considering removing gst on health and life insurance – this will directly benefits the general public. This new GST structure will make the system more simple, transparent and development oriented.