Big Change in GST System; Will Prices Come Down? Relief for Traders and Common People, Did You Hear the News?

There is a possibility that the burden on the common man’s pocket will decrease. Due to one decision of the government, the economy might gain momentum. This news may also bring excitement to the markets. According to sources, a major change is going to be made in the GST system. The government is preparing to remove the 12% slab in GST (Goods and Services Tax). According to reports, the Prime Minister’s Office (PMO) has given the green signal for this big change. This is the first time since the implementation of GST in eight years that such a big change is being made. There is a possibility that it will be finalized in the next GST Council meeting, which may be held in August after the monsoon session of Parliament.

– In the next meeting of the GST Council, a proposal to remove the 12% tax slab will be tabled.
– There are mainly five slabs in GST: 0%, 5%, 12%, 18%, and 28%.
– Apart from this, there are two special slabs — 0.25% and 3% for gold and silver.
– The proposal is to eliminate the 12% slab and merge the items in it into either the 5% or 18% slab.
– Through this, efforts will be made to simplify the tax system.

Three-Tier Tax Structure

There has been a constant demand from the business community for a rational GST structure. There was dissatisfaction about higher taxes on certain goods. After that, discussions on this topic began among central and state government officials. According to information given by sources to Business Today, a proposal for a three-tier tax structure may come forward in the country. That means there will be three slabs — 8%, 16%, and 24%, or alternatively, 9%, 18%, and 27%.

Goods Will Become Cheaper

In both options, basic essential goods will be given concessions. Therefore, the prices of essential and necessary goods will come down under the new tax policy. Prices of some goods will decrease, and the burden on the common man’s pocket will be reduced. However, there could be a decision to increase GST on harmful goods like cigarettes, tobacco, and pan masala. There are discussions about making strategic changes to reduce GST-related fears, simplify taxes, and increase efficiency.

Government’s Big Step

To reduce the burden of GST, the government has started reviewing this tax system. The government is focusing on making the tax system simpler and more streamlined. Based on this, the government will be able to achieve definite revenue targets. After eight years, the government wants to bring reforms to this tax structure. The GST collection figures have so far set many records. There is stability in tax collections. However, states with higher tax collection are facing revenue losses. The government faces the big challenge of resolving this issue. There have been discussions for many days on the current number of slabs and the tax structure. The industry sector and tax experts have been unhappy with the confusion in the current tax structure. The government has taken a step forward to bring a more coherent tax system by introducing a three-tier tax structure.