The central government is planning to give much-needed relief to the common man, who is currently struggling with inflation, by changing the GST rates on over 100 items.
These items include essential goods like medicines and motorcycles.
The Group of Ministers (GoM) is actively working on revising these tax rates.
West Bengal Finance Minister Chandrima Bhattacharya mentioned that the government is considering reducing GST on certain items from 12% to 5%, and the final decision will be discussed in a meeting on October 20.
These 100 items also include key goods like bikes and bottled water.
The GoM is evaluating proposals to rework GST rates,
and there is a plan to merge the 12% and 18% tax slabs as well. However, a detailed analysis will be conducted before final recommendations are made.
Potential Reduction in GST for Common Goods
Finance Minister Chandrima Bhattacharya emphasized that tax rates on items commonly used by the public should be reduced.
For instance, the current GST on motorcycles and their parts is 12%, while e-cycles are taxed at 5%.
The aim is to bring down the GST on food items from 12% to 5%, benefiting the common man.
The Fitment Committee will be reviewing the GST rates, with plans to reduce taxes on essential goods while possibly increasing rates on luxury items to maintain revenue balance.
In a recent meeting held in Goa, led by Bihar Deputy CM Samrat Chaudhary, the ministers discussed changes in GST rates for food products, agricultural goods, fertilizers,
and stationery. The current GST structure has four tax slabs: 5%, 12%, 18%, and 28%.
