Govt proposes 5% and 18% GST slabs, tobacco & pan masala at 40%: Reports
The Indian government has proposed a significant overhaul of the Goods and Services Tax (GST) structure, recommending two tax slabs of 5% and 18%, according to reports quoting government sources. The reports also suggest that sin goods like tobacco and pan masala will face a 40% GST.
The proposal, which has reportedly been sent to the GST Council, is aimed at simplifying the current GST structure, which has multiple tax slabs ranging from 5% to 28%. The current structure has been criticized for being complex and causing confusion among taxpayers.
The proposed 5% GST slab is expected to cover most essential goods and services, including food items, healthcare services, and education. This slab is likely to benefit the common man, as it will reduce the burden of taxes on essential goods and services.
The 18% GST slab is expected to cover a broader range of goods and services, including automobiles, electronics, and luxury goods. This slab is likely to generate significant revenue for the government, which can be used to fund various public welfare schemes and infrastructure projects.
The 40% GST slab for sin goods like tobacco and pan masala is aimed at discouraging their consumption and promoting a healthier lifestyle. These products have been identified as major health hazards, and the government is taking steps to reduce their consumption.
The proposal has been welcomed by many experts, who believe that it will simplify the GST structure and make it more user-friendly. “The proposed GST structure is a step in the right direction. It will reduce the complexity of the current structure and make it easier for taxpayers to comply with the law,” said Dr. Sandeep Shah, a tax expert.
However, some experts have raised concerns about the impact of the proposed structure on small and medium-sized businesses. “The proposed GST structure may not be beneficial for small and medium-sized businesses, which may struggle to comply with the new rules and regulations,” said Mr. Rohit Jain, a business consultant.
The government is expected to take a final decision on the proposed GST structure in the next few weeks. The decision will be taken after considering the feedback and suggestions from various stakeholders, including taxpayers, industry associations, and experts.
In conclusion, the proposed GST structure is a significant step towards simplifying the current tax regime. The two-tax slab structure is likely to benefit the common man and promote a healthier lifestyle. However, the government must ensure that the proposed structure does not have a negative impact on small and medium-sized businesses.
