GST: Major Change in GST, Now Only Two Tax Slabs of 5 and 18 Percent

(GST) A significant decision by the central government will bring a major change in the country's tax structure. After the marathon meeting of the GST Council, the 12 percent and 28 percent tax slabs have been completely abolished. Now, only two slabs of 5 percent and 18 percent will remain, providing significant relief to traders and consumers. This change will be implemented from September 22.

Union Finance Minister Nirmala Sitharaman held a press conference to provide information about these changes. According to her, almost all items in the 12 percent slab will now fall under the 5 percent rate, while most items in the 28 percent slab will now be subject to an 18 percent tax. However, a separate slab of 40 percent is proposed for items like pan masala, tobacco, and luxury cars.

This decision will have a significant impact on daily-use items. There has been a discussion on reducing the tax on items like paneer, khakhra, chapati, soap, toothpaste, and shampoo. Additionally, clothes and footwear up to 2,500 rupees will now only be taxed at 5 percent, making them cheaper. There is also a possibility of a reduction in the prices of houses and electronic appliances.

New rules will also be beneficial for traders and exporters. An automatic refund system will be implemented, and the registration process for exporters will be completed in just three days. This will facilitate trade and accelerate the industry. According to experts, these reforms will simplify the GST tax structure. There will be savings in the expenses of ordinary citizens, and an increase in market buying and selling is expected. This can stimulate the economy and also increase job creation.