The 56th meeting of the Goods and Services Tax (GST) Council is starting in New Delhi today under the chairmanship of Union Finance Minister Nirmala Sitharaman. The two -day meeting is expected to discuss major changes, self -reliance measures and next generation reforms in this two -day meeting.
Taxes on 175 items will be reduced
According to media reports, the central government is planning to cut GST by at least 10 percent on about 175 items. Whereas, there are some amendments that the common man will wait. At present, only two slabs are being proposed from four slabs of 5%, 12%, 18% and 28% in the country. 5% for essential commodities and 18% for non-essential items. In addition, an additional slab of 40% is likely to be proposed for so -called ‘sin goods’ such as tobacco and cars worth Rs 50 lakh or more.
According to the proposal, about 99% of items coming in 12% tax slab can now come in 5% slab. These include things like butter, fruit juice and dry fruits. Apart from this, everyday items like ghee, dry fruits, 20 liters of packed water, salty, some shoes, clothes, medicines and medical equipment are also expected to be reduced from 12% to 5% GST slab. At the same time, common use items like pencils, bicycles, umbrellas and hair pin can also come in 5% tax rate.
See list
- Personal Care Products: Toothpaste, shampoo, soap, talcum powder
- Dairy Products: Butter, cheese, buttermilk, cheese, etc.
- Ready to it foods: Jam, pickle, snacks, chutney, etc.
- Consumer Electronics: AC, TV, refrigerator, washing machine.
- Private Vehicle: Small cars, hybrid cars, motorcycles, scooters.
- Most food and textile products will come under 5% GST.
- Resious GST proposal on life and health insurance.
According to media reports, the prices of electronic items such as some category TVs, washing machines and refrigerators may be lower. The reason is that they are proposed to impose 18% GST instead of current 28%.
Vehicles are currently charged by 28% GST, but different rates can be fixed for different categories in the new proposal. 18% GST is likely to be implemented on early level cars, while the tax rate on SUVs and luxury cars can be kept up to 40%.
Opportunities for these companies
Explain that almost all food and textile products will come in a slab of 5%, which can be considered a boost for companies like Hindustan Unilever Limited, Godrej Consumer Limited and Nestle India Limited. According to a report by Reuters, the GST Council can also decide to increase the tax on electric cars of Rs 20-40 lakh from 5% to 18%. It is proposed to impose more taxes on luxury electric cars like Tesla Inc. and BYD Company.
