GST Shake-Up: Government Proposes To Scrap 12%, 28% Rate Slabs In Two-Slab Plan | Profit Exclusive
About 99% of items currently taxed at 12% will move to the 5% category, sources said.
The government has proposed the existing 12% and 28% slabs under the Goods and Services Tax structure as a part of its two-slab plan, according to people familiar with the matter.
About 99% of the of the items that are currently taxed at 12% will move to the 5% category while most goods taxed at 28%—including white goods— will move to the 18% category, the people told NDTV Profit.
“The Centre is looking at all ongoing issues holistically and will propose a comprehensive package in the next GST Council meeting,” an official source said, adding that the proposal is not linked to US tariffs or geopolitical developments.
Sources said that the decision it is just a proposal and the final decision will be taken after deliberations with all member states. The centre proposes to shift towards a two-slab structure in a move to streamline the current multi-rate system.
The development came hours after Prime Minister Narendra Modi—in his 79th Independence Day speech—announced a major revamp of the GST regime.
Calling GST as one of the most significant reforms since its introduction in 2017, Modi stressed the need for next-generation changes to provide relief to the common man, farmers, the middle class, and MSMEs.
