GST slabs in India 2019: Changes Again? GST rates on these items may come down in New year!
GST rates cut: Days after the GST council approved reduction of GST on several items, the government has hinted further rationalisation of the GST regime. This will bring huge relief to the customers as the 12 and 18 per cent slabs will be merged. In its last meeting on Saturday, the GST council cut rates on 23 items, including those which were in the 28 per cent slab. Here's a look at what the government wants to do next:
GST rate revision: 12-18 per cent slabs to be merged!
In a Facebook post titled 'Eighteen Months of GST', Finance Minister Arun Jaitley on Monday hinted at further rationalisation of GST by merging the 12 and 18 per cent slabs. With an increase in revenue, India will eventually have a standard goods and services tax (GST) rate between 12-18 per cent for commonly used goods. This would be in addition to 0 per cent and 5 per cent for essential items and a higher rate for luxury, sin and demerit goods. (IANS)
GST 28 per cent slab death soon!
Jaitley said the 28 per cent slab is now a dying slab. Currently, 28 items, including luxury and sin goods, auto parts, dishwashers, air conditioners (ACs) and cement remain in the highest slab of 28 per cent. With the GST transformation completed, we are close to completing the first set of rates of rationalisation i.E. Phasing out the 28 per cent slab except in luxury and sin goods, he said. (PTI image)
GST future road map: 12 and 18 per cent slabs to give way to new slab?
Jaitley said a future road map could be to work towards a single standard rate instead of two standard rates of 12 per cent and 18 per cent, he said. "It could be a rate at some mid-point between the two. Obviously, this will take some reasonable time when the tax will rise significantly. The country should eventually have a GST which will have only slabs of zero, 5 per cent and standard rate with luxury and sin goods as an exception," Jaitley said. (PTI image)
GST rate on cement, auto parts
Jaitley said that only cement and auto parts are items of common use which remain in the 28 per cent slab. He added that the next priority will be to transfer cement into a lower slab. "All other building materials have already been transferred from 28 per cent to 18 per cent and 12 per cent. The sun is setting on the 28 per cent slab," he said. (Pixabay image)
GST rate cut effect: Prices of these items to be affected
Jaitley said, of the 1,216 commodities which are used at present, broadly 183 are taxed at zero rate, 308 at 5 per cent, 178 at 12 per cent and 517 at 18 per cent. With the merger of two slabs, prices of 517 items may come down. (Pixabay image)