The Central Government has approved a major change in the GST (Goods and Services Tax) structure.
In a key meeting today, the government decided to remove two existing GST slabs.
Bihar Deputy Chief Minister Samrat Chaudhary, who is leading the Group of Ministers (GoM) on GST rate rationalisation, announced that the 12%
and 28% slabs will be abolished. Now, the proposal will focus only on 5%, 18% and 40% slabs.
New GST Structure Proposal
According to sources, the current GST slabs of 5%, 12%, 18% and 28% are being replaced with a simpler structure. The main idea is to keep two standard rates – 5% and 18%.
About 99% of goods currently under the 12% slab will move to the 5% slab.
Nearly 90% of goods and services in the 28% slab will shift to the 18% slab.
Special 40% Slab for Demerit Goods
Apart from the two main slabs, a special 40% slab is also being introduced. This will apply only to select demerit goods such as pan masala, tobacco, and online gaming.
