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 further suggest that sin goods like tobacco and pan masala will face a whopping 40% GST. The proposal has been reportedly sent to the GST Council.
The proposed GST slabs of 5% and 18% are expected to simplify the current GST structure, which comprises multiple slabs ranging from 0% to 28%. The government is looking to reduce the complexity and confusion associated with the existing GST regime, making it easier for businesses and consumers to navigate.
The 5% GST slab is likely to be applied to essential goods and services such as food, healthcare, and education, while the 18% slab will be applied to non-essential goods and services. This move is expected to benefit the common man, as essential goods and services will become more affordable.
On the other hand, the 40% GST slab for sin goods like tobacco and pan masala is aimed at reducing their consumption and promoting a healthier lifestyle. The government has been cracking down on these products in recent years, and this move is expected to further reduce their consumption.
The proposal has been sent to the GST Council, which is composed of state and central government representatives. The council will review the proposal and make a decision on the new GST structure.
The move is seen as a significant step towards simplifying the GST regime and making it more consumer-friendly. The government has been working to improve the GST system, which has been plagued by issues such as complexity, multiple slabs, and high compliance costs.
The proposed GST structure is expected to have a positive impact on the economy, as it will reduce the complexity and compliance costs for businesses. It will also make it easier for consumers to navigate the GST regime, making it more transparent and easier to understand.
The government has been trying to reduce the burden of taxes on the common man, and this move is expected to achieve that goal. The reduction in the number of GST slabs will make it easier for consumers to understand and comply with the tax regime.
The proposal is also expected to reduce the number of exemptions and concessions, which have been a source of controversy in the past. The government is looking to reduce the number of exemptions and concessions to make the GST regime more transparent and easier to understand.
The GST Council has been meeting regularly to discuss issues related to the GST regime. The council has been working to improve the GST system, and this proposal is the latest in a series of steps taken by the government to simplify the GST regime.
The government has been working to improve the GST system, and this proposal is expected to be a significant step in that direction. The move is expected to benefit businesses and consumers alike, making it easier for them to navigate the GST regime.
In conclusion, the government’s proposal to introduce a 5% and 18% GST slab, with sin goods like tobacco and pan masala facing a 40% GST, is expected to simplify the GST regime and make it more consumer-friendly. The move is expected to reduce the complexity and compliance costs for businesses and make it easier for consumers to navigate the tax regime.
News Source: https://x.com/PTI_News/status/1956324453438406706
