Centre proposes 5%, 18% GST slabs; 40% tax on demerit items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) The central government has proposed two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the current indirect tax regime by Diwali this year, highly placed sources said.
The Centre has sent its proposal, which removes 12 and 28 per cent slabs, to the panel of state finance ministers on GST rate rationalisation. They will now discuss it and place it before the GST Council. The council is expected to meet next month.
While nil or zero per cent GST is charged on essential food items, 5 per cent is charged on daily use items, 12 per cent on standard goods, 18 per cent
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =
ategory and attract the highest tax rate.
As many as 8 sectors textiles, fertiliser, renewable energy, automotive, handicrafts, agriculture, health and insurance will benefit the most from the GST rate overhaul as per the Centre's proposal for ushering in the next generation GST reform.
The revamped GST is expected to give a big boost to consumption, offsetting the revenue loss that may occur from the rate revision, they said.
“There will be a gap in revenues because of the rejig, but the revenue will be offset in the next few months,” a government source said, adding that the new slab structure would be implemented by the early third quarter.
Under the present GST structure, which came into being after central and state levies were s
= = = = = = = =
Plain text (Extract) only
For full text:-Visit the Source
= = = = = = = =