Do You Know the Upcoming GST Rate Changes? Here’s the Chart of Proposed Rates
The final decision rests with the GST Council, which is expected to convene soon after consultations with stakeholders to confirm and notify the revised rates.
GST Rate Changes - Taxscan
GST Rate Changes - Taxscan
The Prime Minister, on Independence day, has announced the reduction in the GST ( Goods and Services Tax ) rates. It was announced the introduction of Next-Generation GST reforms by this Diwali, aimed at reducing taxes on daily-use items.
“The government will bring Next Generation GST reforms, which will bring down tax burden on the common man. It will be a Diwali gift for you,” PM said.
The reports state that the current multi-tier GST structure, which consists of tax rates of 0%, 5%, 12%, 18%, and 28%, would be removed as a result of the revisions. Apart from a potential category for exempt items or services, this might be reduced to only two major slabs.
CNBC-TV18 has shared the list of proposed GST rates. The details of the proposed revisions are as follows.
Goods/Services | Proposed Rates |
Business class travel | 5% |
Economy class travel | 5% |
Hotel stay below 27,500/night | 5% |
Hotel stay above 27,500/night | 18% |
Petrol/diesel cars (s1200cc) | 18% |
Larger cars/SUVs | 40% |
Two-wheelers (≤350cc) | 18% |
Auto components | 18% |
Mobile / WiFi / Telephone bill | 18% |
Laptop | 18% |
Mobile Phone | 18% |
Computer / Tablet | 18% |
Health Insurance premia | 5% or Nil |
Life Insurance premia | 5% or Nil |
Medical Equipment (general healthcare items) | 5% |
Footwear below <1000 | 5% |
Footwear above 71000 | 18% |
Clothes below 71000 | 5% |
Clothes above 1000 | 5% |
Ghee | 5% |
Cement | 18% |
Tractor | 5% |
Water sprinklers | 5% |
It is important to note that the rates mentioned above are only proposals based on government and the media sources. The final decision rests with the GST Council, which is expected to convene soon after consultations with stakeholders to confirm and notify the revised rates.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
