The festival of Diwali is approaching, on the occasion, the common people are going to get a big gift. Prime Minister Narendra Modi has announced that new GST reforms will be implemented on the occasion of Diwali. At the same time, the Ministry of Finance has also given a new proposal for GST reform, under which a big discount in tax is implemented and the goal of implementing it on Diwali has been set.
On the other hand, several reports claim that only 2 tax slabs are going to be implemented under GST reforms, while 4 types of slabs are currently 5%, 12%, 18% and 28%. It is expected that there will be a provision of only 5% and 18% under 2 GST Slab. But ‘Sin tax’ can be applied up to 40% on the product like Pan-Masala, tobacco.
In which category will the products with 12 and 28% slabs be held?
If according to the hope, new reforms are made in GST, then 12 percent tax slab will be eliminated, that is, the government will have the challenge to decide the category of 99 percent of the goods. It is expected that most of the products under 12% will come under 5% tax slab, which will make these products very cheaper.
Similarly, it is expected that some luxury products under 28 percent will come under 18 percent category. Tobacco products are not being included in this.
What things will happen cheap?
Things in 12% slab: Under this slab, more than 90 percent of the products with daily use come. In such a situation, after the new reforms, the slab of these products is going to change, which will come in the category of 5 percent. This will be a matter of great relief for the common people.
12 % of the products under the slab- butter, ghee, cheese, fruit juice, almonds, packaged coconut water, umbrella, some electronics products, medicines and medical products etc. are included. Tax on these things can be reduced by 7 percent.
28% Slab things: Under the new improvement, many products with 28 percent will join the tax slab of 18%. This includes small cars, two -wheelers, air conditioners (AC), television, dishwasher, cement and some insurance etc. up to 32 -inch. Tax can be reduced by 10 percent on these things.
How cheap things will be?
Suppose you buy 30,000 rupees equal and old GST on it: 28% = 8,400 rupees (Total Bill: 38,400 rupees). Now the new GST is applied 18%, then = Rs 5,400 (the bill has come down to Rs 35,400). That is, new improvement will save Rs 3000.
Similarly, suppose if you buy medicines of 10 thousand rupees and these medicines are currently included in 12% category. That is, 12% = 1200 rupees on 10 thousand rupees (total bill: 11200 rupees). Now after GST change, if these medicines are charged 5% tax, then 5% GST = 500 on 10 thousand rupees (the total bill will be reduced to 10500 rupees). This means that there will be a savings of Rs 700 due to low GST rate.
—- End —-