Government

The central government is preparing for a possible revenue deficit of 40,000 rupees due to a comprehensive reform of the goods and services tax structure (GST), according to the sources of the Ministry of Finance.

The installation committee, which is a committee of officers from the GST Secretariat, has developed a draft details about the deficit that the center and the states will regain.

The new Framework GST aims to simplify the current tax system by introducing a modified, 5 % and 18 % structure, along with 40 % on SIN. This restructuring will significantly affect the center’s and state revenues.

In addition, the center is scheduled to lose about 20,000 rupees in GST and TDS groups from online gaming platforms, following a modern decision that appears to be effectively prohibiting these activities in the country.

For most services, there are no major changes, except for GST’s proposed removal on health and life insurance premiums for individuals.

The government expects to lose revenue is temporary and can be compensated by increasing consumer spending. Earlier this year, they provided an income tax deduction to individuals who wear salaries with up to 12.75 rupees per year, and also aims to enhance consumption.

The 56th meeting of the Commodity and Services Tax Council is scheduled to be held from September 3 to 4 in New Delhi, with a meeting of officers on September 2. It was planned in late September or early October, the meeting was presented after consultations with state governments. The center now aims to offer new commodity and services tax rates by Vijayadashami (October 2).

“If all the operations are present, the implementation may be early, about Dussehra,” an official said.

The GOM Group (GOM) supported the rationalization of prices, which met on August 20 and 21 in Delhi, the center’s proposal to eliminate tax panels by 12 % and 28 %. The state ministers of the participants approved the structure of the commodity tax and services of two levels of 5 % and 18 %.

These developments follow the announcement of Prime Minister Narendra Modi during the seventy -ninth Independence Day celebrations, as he promised the reforms of the GST from the next generation by Diwali.

He said: “The government will bring GST reforms from the next generation, which will reduce the tax burden on the ordinary man. Diwali will be a gift for you,” which highlights the intention of reforms to benefit from citizens and stimulate economic activity.