Will Over 150 Products See GST Rate Cuts in This Week's Council Meeting?
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Synopsis
In a significant move, the GST Council is set to finalize proposals this week to cut GST rates on over 150 items. This could ease the financial load on households and stimulate spending. Key sectors like food and education stand to benefit. Stay tuned for the latest updates on this crucial development!
Key Takeaways
- The GST Council will decide on rate cuts for over 150 items this week.
- Proposals aim to ease tax burdens on households.
- Common foods and educational supplies may see significant tax reductions.
- New GST rates could be effective as early as September 22.
Mumbai, Sep 2 (NationPress) The GST Council is poised to reach a conclusion in its upcoming two-day assembly this week regarding the government's suggestion to lower GST rates on more than 150 items as part of a thorough rate adjustment strategy.
The initiative aims to transition various goods from the 12 percent and 18 percent GST brackets to a 5 percent slab or even to a nil GST category, thereby alleviating the tax burden on households and stimulating consumer spending. The GST Council intends to revamp the existing four-rate framework into a simplified two-rate system.
A crucial aspect of this initiative involves broadening the nil GST category to encompass essential food items such as loose paneer, khakhra, pizza bread, chapati, and roti, which presently incur GST rates ranging from 5 percent to 18 percent, as reported by various sources.
Additionally, ready-to-eat items like paratha and parotta, currently subjected to an 18 percent tax, are under consideration for GST exemption. Other products, including butter, condensed milk, jams, nuts, namkeens, mushrooms, and dates, may witness a tax reduction from 12 percent to 5 percent.
The Centre also plans to slash the GST on various confectioneries, popular packaged snacks, breakfast items, and desserts from 18 percent to 5 percent. This category reportedly includes cocoa chocolates, pastries, ice cream, and breakfast cereals such as cereal flakes, mainly favored by urban audiences and younger consumers.
Moreover, it's anticipated that the tax on entry-level passenger vehicles and two-wheelers will be reduced to 18 percent, enhancing affordability ahead of Diwali. Currently, all passenger vehicles powered by combustion engines are subject to a GST of 28 percent plus a compensation cess that ranges from 1 percent to 22 percent, depending on engine capacity, length, and body type.
The education sector is also set to gain, as items like maps, globes, pencil sharpeners, exercise books, graph books, and lab notebooks are proposed to have their GST cut from 12 percent to zero. This could lead to considerable savings for students and parents, especially with the new academic year approaching.
The proposed rate cuts will be presented to the GST Council, comprising representatives from both the Central and State governments. The revised GST framework may be implemented by September 22 following approval.
Point of View
The impending GST rate cuts signal a proactive approach by the government to alleviate economic pressures on households. By adjusting tax rates on essential goods, the GST Council aims to stimulate consumer spending and provide relief to families, especially ahead of the festive season.
NationPress
02/09/2025
Frequently Asked Questions
What items are expected to see GST rate cuts?
Over 150 items, including food products, educational materials, and confectionery, are likely to see reduced GST rates.
When will the new GST rates be implemented?
The revised GST structure may be implemented by September 22, pending approval from the GST Council.
How will these changes affect consumers?
Consumers can expect lower prices on essential goods and services, potentially leading to increased spending.
