Challa Sreenivasulu Setty, chairman of the National Bank of India (SBI), said on Thursday that the government’s daily transfer of household goods to 12% of tablets will provide real relief for people in the form of enhanced savings and better spending capacity.
His remarks were reached for the 56th time on September 3, at the GST committee, the highest decision-making body for the government to indirect taxes, approved a comprehensive tax reform, simplified the GST structure, and now used two main interest rates instead of four main interest rates, and introduced 40% of evil and luxury goods such as cigarettes and small cars.
The central government said the new tablet system will take effect on September 22, noting that until then, crime projects including “Gutkha” and other tobacco products will continue to be taxed at their respective existing interest rates. The finance minister said this period would allow the center to clear some compensation-related debts from the state and UTS.
GST 2.0: 2 single board systems will start on September 22
The GST committee led by the Finance Minister canceled 12% and 28% of the tablets, and products and services taxed at these rates were transferred to 5%, 18% or zero tax.
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Setty said the insurance department will also benefit from premium taxes, thereby expanding coverage and higher insurance penetration.
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“As GST rates lower, consumer goods will become cheaper, which will also help ease retail inflation (CPI).” added the SBI chairman.
In July, retail inflation, measured by the Consumer Price Index (CPI), hit an eight-year low of 1.55%, even lowering to a retail price of 3.1% from RBI’s 60 base points in its fiscal 26 forecast.
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Many experts have argued that the GST 2.0 reform will enhance domestic consumption and help in the long run, but may not be profitable for some businesses.
