GST Council: The next meeting of GST Council to be held in September, this big change is expected

GST couricil: There is good news for consumers and traders waiting for GST to improve. The GAT Council is expected to have a two -day meeting in September. It has been reported by quoting government sources. It is expected that in this meeting, 12 percent of the existing 5 tax slabs (0 percent, 5 percent, 12 percent, 18 percent, 28 percent) will be removed and the slab will be divided into two parts by removing 12 percent slab. This will reduce complications about GST.

Currently, the structure of GST is divided into four main types-

5 percent slab: essential items like tea, sugar, coffee and edible
12 percent slab: butter, ghee, processed food, almonds, mobiles, fruit juices, vegetables, fruits, nuts etc. are included.
18 percent slab: Everyday items like hair oil, toothpaste, ice cream and pasta.
28 percent slab: Luxury items and Tobacco products such as car, expensive clothes-jute, air conditioner are included in this slab.

Common public relief from tax burden

In a 2018 report of the World Bank 2018, the Goods and Services Tax (GST) system in India has been described as the world’s most complex and second most expensive tax system. There are single slabs in 49 countries of the world and two slabs in 28 countries. There are only five countries where there are four or more tax slabs. About 21 percent items fall in the category of 5 percent, 19 percent items in 12 percent category and 44 percent items in 18 percent slab. At present, there is talk of abolishing 12 percent tax slab. Its purpose is to reduce inflation by reducing the price of everyday things. This will provide relief to the general public of the country.

Addressing the nation on the occasion of Independence Day today, Prime Minister Narendra Modi said, “I have been going to give a big gift this Diwali. In the last eight years, we have made a big improvement in GST and simplified the tax system. Now, the review time has come. We have completed it, consulted with the states, and now the next generation is ready to implement ‘GST improvement of the next generation’.

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GST reforms: ‘Double Diwali’ will be celebrated this year, will get a low tax gift, PM Modi made a hint