The renewal of commodity and services tax may reduce the goods tax on the use of goods tax from 12 % to 5 %, and there is likely to be a significant reduction this month

The government weighs a major reform of commodity tax panels and services that can bring immediate relief to medium and low -income families, with a 12 % tax category on commodities daily use probably on the cutting block.

According to the sources, the center is seriously considering restructuring the rates of goods and services tax (GST), especially aimed at reducing the burden on the basic goods used by Indian medium families.

Currently, many of these daily products fall under the commodity and services arc by 12 %. The proposal is under discussion either converting the majority of these goods into a 5 % board or eliminating a 12 % plate.

“Most of the goods used by the Mediterranean and low income in the 12 % category,” said one of the senior officials of the journalists. “Transferring to a 5 % board can provide a significant reduction in cost.”

Timing is also very important. The decision can come early from the next meeting 56 of the Commodity and Services Tax Council, which is expected later this month. A 15 -day mandatory notice is required for such a meeting, and the preparations are already ongoing.

If implemented, the change will not only simplify the structure of goods tax and services, but also provides a clear indication that the government is dealing with inflation fears directly-especially with the continued high cost of living in the tension in the budgets of the families.

Sources said the proposal is part of a broader reassessment of commodity and services tax rates, which can eventually lead to a more compact three -level system, with potential panels such as 8 %, 16 %, 24 %, 9 %, 18 %, and 27 %.

Although the final approval will depend on consensus within the commodity and services tax council, the tone of the center indicates the urgency and political will to move forward.