The Commodity and Services Tax Council is scheduled to circulate a comprehensive reform of the indirect tax system in India, with a proposal to reduce the current four levels to only two panels -5 % and 18 %-reduce the tax on a wide range of home commodities, as economic times mentioned.
According to the report, the GST installation committee, which includes officials from the center and the states, agreed to the proposal to eliminate 12 % and 28 % panels and turn into a simplified structure. A special rate of 40 % of sin commodities and selection of luxury products are considered.
“All the products used by the average man – from bicycles to food, hygiene, clothing and medicine tools, and even film and hotels tickets (with a tariff of up to $ 7500 per night) – will be at the lowest plate by 5 %,” and quoted a senior report in the report.
This step is expected to reduce the burden of family tax by 12-15 %.
The Commodity and Services Tax Council, headed by Finance Minister Nermalla Sitraman, including ministers from all states, will hold a two -day meeting to review the detailed study of the alerting committee and evaluate the effects of revenues. The proposal may also end compensation for compensation for elements on which taxes are currently imposed by 28 %.
The basics, ambitious products, and super luxury goods may be distinguished on the basis of price thresholds. Large industrial contracts can also be evaluated separately.
India has adopted the current GST structure by 5 %, 12 %, 18 % and 28 % in July 2017. Compensation has been added between 1 % to 290 % on luxury and bids to state revenue losses.
An excess of 3000 rupees in the compensation fund is expected by the end of September and can be distributed between the center and the states if approved.
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