 "<div>GST 2.0: India caps goods tax at 18%, nil or 5% on food & household items; 40% on demerit articles</div>")
The current four-tier tax structure of 5 per cent, 12 per cent, 18 per cent, and 28 per cent will be replaced by a simplified two-rate system
The Goods and Services Tax (GST) Council has announced next-generation tax reforms as promised by Prime Minister Narendra Modi from the ramparts of Red Fort on Independence Day. The Council has approved the centre’s proposal to streamline the indirect tax structure into a dual slab of 5 per cent and 18 per cent.
The current four-tier tax structure of 5 per cent, 12 per cent, 18 per cent, and 28 per cent will be replaced by a simplified two-rate system. Under the new model, essential or “merit” goods will be taxed at a reduced rate of 5 per cent, while the majority of goods and services will be subject to a standard 18 per cent rate.
“GST Council approves reforms with a multi-sectoral and multi-thematic focus on improving the lives of all citizens and ensuring ease of doing business for all, including small traders and businessmen,” a press release said.
Refresh for updates.
End of Article
&description=GST+2.0%3A+India+caps+goods+tax+at+18%25%2C+nil+or+5%25+on+food+%26+household+items%3B+40%25+on+demerit+articles){kind=link}