The GST Council may consider a major change in the GST slab. Yes, the GST Council may abolish the 12 percent GST slab. If this change is implemented, the number of GST slabs will be reduced from 4 to 3. Hindustan Times has given this information quoting people associated with the matter. The report says that the government may consider shifting the goods and services falling in the 12 percent GST slab to the 5 percent and 18 percent slabs.
Who will benefit and who will be harmed
If this decision is implemented, on one hand some people will get a big benefit from it, while on the other hand many people will have to bear the loss. Consumers associated with the goods and services that come in the 12 percent slab will get a big benefit from this. On the other hand, consumers associated with the goods and services that come in the 18 percent slab will have to pay more than before.
Who will take the final decision on GST slab
Officials and experts advising the Group of Ministers (GoM) on rationalisation of GST rates have reached a “near consensus” that the current 12 per cent GST slab is no longer relevant and items falling under it can be shifted to 5 per cent or 18 per cent slabs. It said the proposal to remove the 12 per cent tax slab has been supported by most central and state government officials, experts and GoM representatives. However, the GST Council has to take a final decision on this.
Which items fall under 12% GST slab?
India currently has 4 GST slabs of 5%, 12%, 18% and 28%. The 12% GST slab includes condensed milk, drinking water packaged in 20-litre bottles, walkie talkies, tanks and other armoured fighting vehicles, contact lenses, cheese, dates, dry fruits, pasta, jam, packaged fruit juices, namkeen, feeding bottles, carpets, umbrellas, hats, bicycles, wooden furniture, pencils, handbags made of jute or cotton, shopping bags, shoes priced below Rs 1000, diagnostic kits and many more. Let us tell you that the next meeting of the GST Council is expected to be held in late June or early July.
