On Wednesday (September 3), the GST Council approved a two -stage GST structure of 5% and 18% after the 10th hour meeting of the marathon, which meant the main step in the next generation Indian tax reforms. Changes come into effect from September 22.
Prime Minister Narendra Modi took X, formerly Twitter to announce and declare that the Governments of the Union and state governments collectively approved a number of reforms in goods and services (GST), which aimed to simplify the procedures and alleviate the financial burden of citizens and enterprises.
In the X, formerly Twitter, PM Modi, he said: “During my speaking Independence Day, I talked about our intention to bring next generation reforms in the GST.
He added that the GST reforms, cleaned by the GST Council, will benefit from more sections of the company: “Please state that @gst_coucil, including the Union and States, agreed together with the proposals submitted by the Union’s government on the cut and reforms of GST, from which it will benefit from an ordinary person, farmers, MSMes, middle classics, women and youth.”
PM Modi emphasized the expected impact and stated that changes will improve the ease of business:
“Wide reforms will improve the lives of our citizens and ensure easy business for all, especially small traders and businesses.”
All states aboard
Representative Minister Bihar Samrat Choudhary confirmed that the reform was supported by all states and called it a “consensus -based decision”.
The consequences of income
In support of movement, some states have marked concerns about potential income losses. Finance Minister West Bengal Chandrima Bhattacharya noted that the total estimated loss of rationalization of the rate stood on £47 700 crore.
GST Council approves the reworking of MMAJOR; Rates have decreased to daily use items, premiums exempt
When deciding on the milestone, the tax council on the goods and services (GST) approved extensive reforms of the Indian indirect tax system on Wednesday, shot down rates on common use items and collapsed the current structure with four boards into two primary boards 5% and 18%.
Union Finance Minister Nirmala Sithaman, briefing reporters after a marathon meeting 10.5 hours, said all decisions were taken unanimously, without disagreement from any state.
Everyday items are cheaper
Personal use objects including hair oil, toothpaste, shampoo, soaps, toothbrushes, talc powder, front powder and even TVs and consumer electronics will see that their GST speeds will be reduced to 5% or 18% of earlier 12-28% of holders.
Food and drinks such as butter, ghee, dry nuts, condensed milk, jam, confectionery, fruit juice, ice cream, pastries, biscuits, corn flakes and cereals now attract 5% GST instead of 18%. All forms of Chapati and Paratha will be completely liberated.
Great relief for insurance, health coverage
In a significant step, all individual life and health insurance without tax without tax were, and the government was aimed at expanding the coverage and alleviating the financial burden for households.
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Cars, cement and consumer goods
Cement rates decreased from 28% to 18%, which reduced housing and infrastructure projects.
Cars below 1,200 ccm (petrol) and 1,500 cm (diesel) will be taxed by 18%, 28%.
Top cars, racing cars, yachts, personal use and motorcycles over 350 cm will face 40% of the fee.
Motorcycles below 350 cm and consumer electronics such as ACS, dishwashers and TVs will drop to 18% of 28%.
EV remains 5% of GST to continue to support pure mobility.
Exceptions remain
Products such as tobacco, Gutkha and cigarettes will continue to attract 28% GST Plus compensatory CESS until loans for the compensation of states for earlier GST income losses are repaid.
Implementation from September 22
The newly approved two -stage GST structure will be introduced from September 22, which means a significant shift in the Indian indirect tax regime focused on easy housing and easy business.
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