Key Highlights:
- Government may cut GST on essential goods from 12 percent to 5 percent.
- 56th GST Council meeting to take a final decision soon.
- Move likely to benefit middle-class and poor households.
New Delhi: The central government is planning a major change in the Goods and Services Tax (GST) structure. According to sources, a proposal is being considered to either cut the 12 percent GST rate to 5 percent or to remove the 12 percent slab altogether.
This change aims to make essential goods cheaper for the general public, especially for middle-class and low-income families. The move could offer much-needed relief during a time of rising costs.
Daily-Use Items May Get Cheaper
Most items that currently fall under the 12 percent GST slab are used daily by common people. These include products that are important for households and are part of everyday consumption.
If these items are moved to the 5 percent slab, their prices will drop. That means consumers will pay less tax on these goods, saving money on their monthly expenses.
Big Decision Expected in GST Council Meeting
A final call on the proposal will be taken during the upcoming 56th meeting of the GST Council. The GST Council is headed by the Union Finance Minister and includes finance ministers from all states.
Sources say that the meeting could be held later this month, as a 15-day notice is usually required. The decision could also carry political weight, as it comes ahead of elections and would benefit a large section of the population.
Possible End to the 12 percent Slab
Another option being discussed is to scrap the 12 percent GST slab entirely. If this happens, items could be shifted into either the 5 percent or 18 percent slabs, depending on their nature.
This would be one of the biggest GST changes since 2017, when the tax system was first introduced.
