GST Reforms: Four-Slab GST to Be Reformed into Two Slabs, Only 5% and 18% Slabs from Diwali

GST Reforms: The Finance Ministry of India is making very significant changes in the GST structure. A new GST rate will be implemented on the occasion of Diwali. The GST rates currently in place range from 5% to 28%, which will now be maintained between 5% and 18%. The GST Council is going to hold a meeting in September to discuss this in detail. This new GST system will slightly reduce the tax burden for all consumers and businesses.

GST Reforms

Let us tell you that the new GST system will have only 5% and 18% GST rates. In this case, the 28% GST rate is being removed, and the 12% GST rate in between is also being eliminated. The country’s Prime Minister, during the 79th Independence Day, informed about this, stating that this new GST system will be implemented on the occasion of Diwali, which will reduce the tax burden on people. Small businesses will benefit a lot from this.

How the Finance Ministry Has Designed the GST Reform

The information provided by the Finance Ministry states that this new GST reform is being prepared based on three points: structural reforms, rational changes in rates, and making life easier. This will make essential goods cheaper for the common man as the tax on them will be reduced.

GST Council Meeting in September

Let us tell you that a GST Council meeting will be held in September under the chairmanship of Finance Minister Nirmala Sitharaman. In this meeting, a collective discussion will be held with all ministers, and the new GST Council will be implemented with some policy decisions.

Current Status of GST

Currently, a four-tier GST structure is in place, where essential goods are either not taxed or kept in the 5% tax slab. On the other hand, harmful and luxury goods were taxed up to 28%. However, this tax system will now be discontinued, and a new tax system will be implemented.