GST rate rejig: Sitharaman to address Aug 20 GoM meet to put forth Centre's rate cut proposal
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) Finance Minister Nirmala Sitharaman will on Wednesday address a crucial meeting of a group of ministers of states as she makes a case for the sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.
The Centre has proposed a 2-tier GST structure of 5 and 18 per cent, besides a 40 per cent special rate on a select few items to the GoM on GST rate rationalisation.
The proposal, which entails removing the current 12 and 28 per cent tax slabs, will be discussed at the 2-day meeting of the state ministerial panel on August 20 and 21 here in the n
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ying items under the category of 'merit' and 'standard' and the broad principle followed in the classification is to reduce tax burden for middle class, MSMEs, and the farm sector.
The proposed 40 per cent slab, the highest permissible tax rate under the GST law, will be only for about 5-7 items, including demerit goods like pan masala, tobacco and online gaming.
Goods and Services Tax (GST) is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either at nil or 5 per cent, luxury and demerit goods are in 28 per cent slab, with a cess on top of it.
If the Centre's proposal is accepted by the GoM, it would be placed before the GST Council, chaired by Sitharaman and comprising finance ministers from all sta
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