Quick Summary
The Centre is considering a major restructuring of the GST rate slabs, proposing to move a majority of goods and services from the 12% bracket to 5%.According to government estimates, this rejig could result in an annual revenue loss of nearly Rs 80,000 crore. Officials indicated that the shortfall will be partly offset by retaining the highest GST slab of 40% on demerit and luxury goods such as tobacco, cigarettes, aerated drinks and high-end automobiles. With the cess merged into GST, these c
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FAQ :
The Centre is planning to move a majority of goods and services from the current 12% GST slab to a lower 5% slab.
The government estimates an annual revenue loss of approximately Rs 80,000 crore due to this shift.
The revenue shortfall will be partly covered by keeping demerit and luxury goods, like tobacco and high-end cars, under the highest 40% GST slab.
Items like butter, ghee, processed food, fruit juices, mobiles, umbrellas, tractors, and certain construction and transport services are expected to benefit from the tax cut.
No, aerated beverages, sugary drinks, tobacco products, and large cars (engines above 1,200 cc) will remain under the 40% GST slab, with no tax relief.
The Group of Ministers (GoM) on Rate Rationalisation is scheduled to meet on August 21 to finalise recommendations for the GST Council.
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