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 stiff 40% GST. The proposal has been reportedly sent to the GST Council for further consideration.
The GST Council, comprising of central and state finance ministers, has been tasked with the responsibility of reviewing and revising the GST structure. The council has been meeting regularly to discuss various issues related to the GST, including the need to simplify the tax regime and reduce the complexity of the current system.
The proposed 5% GST slab is likely to apply to most goods and services, including food items, medicines, and essential commodities. This move is expected to benefit consumers and small businesses, as it will reduce the burden of taxes on them. The 18% GST slab, on the other hand, is likely to apply to luxury goods and services, including high-end electronics, jewelry, and automobiles.
The 40% GST on sin goods like tobacco and pan masala is a significant move, as it aims to discourage consumption of these products and reduce the impact of their consumption on public health. Tobacco and pan masala are considered to be harmful to health, and the government has been looking for ways to reduce their consumption.
The proposal to increase the GST on tobacco and pan masala is part of the government’s efforts to reduce the country’s health expenditure. The government has been facing pressure to reduce the consumption of these products, as they are known to cause serious health problems, including cancer and heart disease.
The GST Council has been discussing various options to increase the GST on tobacco and pan masala, including imposing a higher cess on these products. However, the proposal to increase the GST on these products has been met with resistance from some states, which are concerned about the impact of the move on their revenue.
The government has been under pressure to simplify the GST regime, as it has been facing criticism for its complexity and multiple tax rates. The current GST regime has 12% and 28% tax slabs, with additional cesses on certain products. The government has been looking for ways to simplify the regime and reduce the burden of taxes on consumers and businesses.
The proposal to reduce the number of GST slabs is part of the government’s efforts to simplify the regime. The government has been exploring various options, including reducing the number of tax slabs and introducing a single tax rate for all goods and services.
The GST Council has been meeting regularly to discuss various issues related to the GST, including the need to simplify the regime. The council has been considering various options, including introducing a single tax rate for all goods and services. However, the proposal to introduce a single tax rate has been met with resistance from some states, which are concerned about the impact of the move on their revenue.
The government has been under pressure to reduce the complexity of the GST regime, as it has been facing criticism for its complexity and multiple tax rates. The current GST regime has multiple tax rates, including 12% and 28%, with additional cesses on certain products. The government has been looking for ways to simplify the regime and reduce the burden of taxes on consumers and businesses.
The proposal to simplify the GST regime is part of the government’s efforts to improve the ease of doing business in the country. The government has been exploring various options, including reducing the number of tax slabs and introducing a single tax rate for all goods and services. However, the proposal to simplify the regime has been met with resistance from some states, which are concerned about the impact of the move on their revenue.
The government has been under pressure to improve the ease of doing business in the country, as it has been facing criticism for its complex tax regime. The current tax regime has multiple tax rates, including 12% and 28%, with additional cesses on certain products. The government has been looking for ways to simplify the regime and reduce the burden of taxes on consumers and businesses.
The proposal to simplify the GST regime is part of the government’s efforts to improve the ease of doing business in the country. The government has been exploring various options, including reducing the number of tax slabs and introducing a single tax rate for all goods and services. However, the proposal to simplify the regime has been met with resistance from some states, which are concerned about the impact of the move on their revenue.
In conclusion, the government has proposed a significant overhaul of the GST structure, recommending two tax slabs of 5% and 18%, and a 40% GST on sin goods like tobacco and pan masala. The proposal has been sent to the GST Council for further consideration. The move is expected to benefit consumers and small businesses, as it will reduce the burden of taxes on them. However, the proposal has been met with resistance from some states, which are concerned about the impact of the move on their revenue.
