Only 2 major GST rates can you stay? Following PM Modi’s large “Diwali Gift” announcement, the center sends proposals to reduce costs
Has the main GST been embossed? Hours after Prime Minister Narendra Modi announced large amounts of GST relief ahead of Diwali this year, the central government made a proposal to lower the indirect tax rate. Sources told Zee Business that the government’s goal is to reduce the number of major tax rates to just 2%, 5% and 18%. Currently, there are five major GSTs: zero percent, 5%, 12%, 18% and 28%.
Similarly, in the proposed GST rate system, there will be no CESS regulations.
In his record 103-minute Independence Day speech, PM Modi said this year is expected to bring the next-generation Goods and Services Tax (GST) reforms to this year ahead of Diwali, suggesting that rationalized interest rates will not only lead to speed revisions, but will also lower the prices of daily projects, thereby supporting the economy.
The Prime Minister also said the new GST reform will reduce the tax burden on consumers and small businesses in the country. “The next generation of GST reform will unveil at Diwali, reducing taxes on essentials and providing relief to MSMES, local suppliers and consumers,” an official statement said.
Key changes you might expect in the proposed GST rule
Sources said that the interest rate will remain 40% for commodities that attract crime taxes, with only 5-7 products continuing to fall into crime categories such as tobacco, Pan Masala and cigarettes.
They added that 99% of the current 12% of the sectors currently have products that are likely to move to 5% of the plates, while 90% of the 28% of the sectors will move to 18% of the category.
Sources say taxes on items such as refrigerators, air conditioners and washing machines will be reduced.
Sources also said there will be no significant changes in the inverted structure, which will benefit pockets such as textiles and fertilization.
In the indirect tax system, an inverted tax structure is a situation where the tax rate of input (such as raw materials or components) is higher than the finished product tax rate.
Currently, GST revenue comes from 18% of tablets. This tablet accounts for two-thirds of the total collection.
28% of the categories contributed 11% of the total revenue of GST, while 12% of the contributors and 5% of the contributors were 5% and 7%.
Seth
According to sources, in the proposed changes to the GST rulebook, once its loan is stated, there will be no tax levy and removal of CESS from October to November may take effect.
GST Insurance
There is a plan that does not cover insurance, rather than the current 18%.
Most services will continue to attract GST at 18%.
They noted that GST in online games can be increased from 28% to 40%.
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What is the GST Council and what does it do?
The GST Commission is the highest decision-making body for the GST indirect tax system in the country.
Under the leadership of the Finance Minister, it recommends GST and exemptions, framework rules, resolves disputes, and oversees reforms to the indirect tax system.
The agency is a joint forum representing the central and state/UT governments. In addition to the Union Finance Minister, the state head of finance or revenue is a member of the Council and the CBEC Chairman is a permanent invitation to its meeting.
