TICE Exclusive On GST Rates: Cheaper Essentials & a New Tax Slab?

Exclusive insights from Tice News reveal a major reshuffle of GST rates on the horizon, impacting everything from your daily necessities to luxury indulgences.

NEW DELHI - Hold on to your wallets, folks! The Goods and Services Tax (GST) Council is gearing up for a significant revamp of its rate structure, with potential implications for your household budget and the Indian economy. Tice News has learned from exclusive sources that the Group of Ministers (GoM) on Rate Rationalisation has finalized its report, proposing changes to GST rates on a whopping 148 items.

The core philosophy behind these recommendations seems to be two-fold: making everyday essentials more affordable for the common man while increasing the tax burden on luxury goods and health-damaging products.

Expected Changes in GST

GST Rate Hike on Tobacco and Aerated Drinks

Smokers and soda lovers may soon feel the pinch. The GoM has recommended a substantial increase in GST on tobacco, tobacco products, and aerated drinks, from the current 28% to a hefty 35%. This "sin tax" aims to discourage the consumption of these unhealthy items while bolstering government revenue.

Reaed More: Top Economic News: GST Collection Rises, Post-Festive Slump and More!

Luxury Items Face GST Hike

Luxury shoppers, be prepared to pay a premium. The GoM has proposed raising the GST on a range of luxury goods, including:

• High-end leather bags
• Cosmetics
• Expensive watches
• Luxury footwear

This move targets consumers with higher disposable incomes and seeks to generate additional revenue from non-essential items.

GST Relief for Everyday Essentials

Good news for budget-conscious consumers! The GST Council is likely to reduce rates on several everyday essentials, making them lighter on the pocket. Items expected to see a GST reduction include:

• Bottled water
• Bicycles
• Exercise notebooks

This move is expected to provide much-needed relief to households and make these essential items more accessible.

Read More: Who Is Kash Patel? And Why Did Donald Trump Choose Kashyap Patel?

Readymade Garments to See Tiered GST Structure

A tiered GST system is on the cards for readymade garments. The GoM has recommended the following structure:

• 5% GST on garments priced up to Rs 1,500
• 18% GST on garments priced between Rs 1,500 and Rs 10,000
• 28% GST on garments priced above Rs 10,000

This tiered approach aims to create a more equitable system where cheaper garments attract lower taxes.

Is 35% the New GST Slab?

The proposed 35% GST rate on tobacco and aerated drinks hints at the possible introduction of a new GST slab. This could pave the way for a more nuanced and tiered tax system with varying rates for different categories of goods and services.

Read More: How Is This Startup Revolutionizing Healthcare for Remote Villages?

Impact on Consumers and the Economy

These proposed changes are expected to have far-reaching consequences for both consumers and the Indian economy. While the reduction in GST on essential items will offer relief to households, the increased taxes on luxury goods and sin products could impact consumer spending and industry revenue.

Tice News will continue to monitor these developments closely and provide updates as they unfold. Stay tuned for the latest news on the GST rate revisions.

Join Our Thriving Entrepreneurial Community

Follow TICE News on Social Media and create a strong community of Talent, Ideas, Capital, and Entrepreneurship. YouTube  | Linkedin | X (Twitter) | Facebook | News Letters