 "GST 2.0: From fertilisers to textiles, here are proposed sector-wise tax rate revisions")
From fertilisers to textiles and automobile parts, the Group of Ministers is set to recommend revision of the goods and services tax (GST). Here is how the new GST structure will look like.
In the wake of US President Donald Trump’s tariff war on India, the Group of Ministers (GoM) on GST rate rationalisation is set to recommend widespread revision of current rates, which will include reducing rates on most of the goods.
Under recommendations of the GoM, the CNBC-TV 18 has reported that four slabs that exist today (5 per cent, 12 per cent, 18 per cent, and 28 per cent) will be reduced to two slabs of 5 per cent and 18 per cent. The 0 per cent slab will also exist for several goods and services.
A third slab of 40 per cent will also be created for certain luxury goods and ‘sin’ goods of tobacco and aerated beverages with added sugar.
Under the rationalisation, most of the goods and services charged 28 per cent slab will be charged 18 per cent GST. Similarly, most of the goods and services charged 12 and 18 per cent GST will be charged 5 per cent.
Here is the sectoral breakdown of recommended GST rates as reported by CNBC-TV18.
GST RATE CUT RECOMMENDATIONS
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GST on cement to be reduced to 18 per cent from 28 per cent
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GST on automobile parts and accessories to be reduced to 18 per cent from 28 per cent
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GST on hotel accommodation to be reduced to 5 per cent on rent up to Rs 7,500 per night
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GST on tractors to be reduced to 5 per cent from 12 per cent
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GST on tyres to be reduced to 5 per cent
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GST on defence components like walkie-talkie, tanks, and armoured vehicles to be reduced to 5 per cent
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GST on wood pulp, cartons, boxes, and paperboards to be reduced to 5 per cent
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GST on most educational products and services to be reduced to either 0 per cent or 5 per cent
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GST on face powder, hair oil, shampoo, toothpaste, and soap to be reduced to 5 per cent
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GST on medical devises and medicines to be reduced to 5 per cent from 12 per cent
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GST on fertilisers to be reduced to 5 per cent
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GST on textiles to be reduced to 5 per cent from 12 per cent
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GST on footwear below Rs 2,500 to be reduced to 5 per cent
GST RATE INCREASE RECOMMENDATIONS
- GST on casino services to be reduced from 28 per cent to 40 per cent
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