New Delhi, 22 September (IANS) is called the most important overhaul of the Goods and Services Tax (GST) regime, the Indian government will implement the revised GST structure from Monday.
The comprehensive reforms approved by the GST Council earlier this month introduced a simplified two-level tax system and amended rates for over 375 items, which directly affects the domestic budget across the country.
Under the new structure, most of goods and services will now be taxed at 5 percent or 18 percent, which will replace the previous four-slab system. The high rate of 40 percent will be particularly applied to ultra-wooden items, sin goods and other demerit products.
Essential commodities such as food grains, medicines, and daily use consumers will remain in 5 percent brackets, maintaining the ability for the common man. Meanwhile, the mid-range product, the first 12 percent was taxed, can now be cheaper, as 12 percent of slabs have been removed.
Items that look at GST rate reduction include ghee, butter, cheese, coffee, snacks, jams, ketchups, dried fruits and ice cream. The government says that this step is designed to provide financial relief to urban and semi-urban homes, especially beyond the festive season.
Marking the launch of the new GST regime, Prime Minister Narendra Modi on Sunday announced the introduction of a nationwide “GST festival” from the first day of Navratri, called it a “festival of savings” for every Indian.
In his national address, PM Modi said, “The next-gene GST reforms are being implemented from tomorrow. It is like a GST Savings Festival.” “From September 22, people will be able to buy their favorite goods at low prices. Poor and new middle class are getting double benefits after cutting GST rate.”
The Union Finance Ministry informed the revised Central GST (CGST) rates on 18 September, while the state governments are issuing consistent information for the state GST (SGST). The joint effect of these changes will be felt from Monday.
With the new system, referred to as GST 2.0, the government aims to promote consumption, simplify compliance and make indirect tax structure more transparent and civil-friendly. Small businesses, MSMEs, farmers, women and youth are expected to benefit greatly from reforms.
,
Rupee/