GST revision: A big change in the GST system implemented in the country can be revealed. The government plans to impose two new cess instead of the current ‘compensation cess’- one ‘Health Cess’ and the other ‘Clean Energy Cess’. This will directly affect products like cigarette, cold drinks, expensive cars and coal. If this proposal passed, then the burden on the common man’s pocket is sure to increase.
These things will be on health cess
Health cess will be applied on items that are usually considered harmful to society, such as tobacco products, cigarettes, and sugar drinks. These items already fall in 28% tax bracket of GST. Now there is a plan to put additional health cess on these so that people can be motivated to stay away from them and the government can also get additional revenue.
Effect on expensive cars and coal from clean energy cess
Second cess, that is, the purpose of ‘Clean Energy Cess’ is aimed at increasing the tax on clean energy by increasing tax on polluting fuel like high -priced vehicles and coal. This is being considered a step related to Prime Minister Narendra Modi’s policy of ‘Green Bharat’. It is expected that this will promote electrical and low pollution techniques.
There may be a big change in tax slab too
Not only cess, the government is also considering abolishing 12% GST slab. With this, some products will go into a cheap range with 5% tax, while some will be included in a higher rate of 18%. For example, everyday items like toothpaste can be kept in cheap tax brackets. However, this may initially put a burden of up to Rs 50,000 crore on the central government, but the government believes that if the prices decrease, consumption and tax collection will increase.