New Delhi: GST rates on every day items of consumption may be relaxed in a bid to bring relief to consumers, according to people familiar with the matter. The group of ministers (GoM) on rate rationalisation, headed by Bihar deputy CM Samrat Chaudhary have decided on an array of items of consumption that may witness a GST rate change in the GST Council meeting set to be held on December 21, 2024. readymade garments and
GST rates are revised based on the report of the GoM on rate rationalisation from time to time and in response to demand from businesses as well as consumers.
Sin tax in cigarettes and cola
The GST Council is likely to hike taxes on cigarettes and colas in a bid to discourage their use. Cigarettes, aerated beverages and related products are likely to witness a change in GST rates to 35 per cent from 28 per cent right now.
How GST on apparels may change
The GST on apparels may be changed based on the pricing. The GoM on rate rationalisation decided to tax apparel priced up to Rs 1,500 at 5 per cent. Apparels priced Rs 1,500-10,000 may be taxed at 18 per cent. Garments priced above Rs 10,000 may be taxed at 28 per cent. Overall rate rationalisation is likely to affect 148 goods and services, according to the official. To be sure, these changes are expected to have a net positive impact on the government’s kitty, said the official cited above.
The GoM is expected to propose a new GST rate of 35 per cent, adding 5th slab to the existing rates of 5 per cent, 12 per cent, 18 per cent, and 28 per cent.
In October, the GoM proposed to slash GST rate to 5 per cent from 18 per cent on packaged drinking water of 20 litres and above. GST on bicycles priced below Rs 10,000 was also proposed to be slashed to 5 per cent, from 12 per cent. Another key rate cut proposed in October was that no notebooks to 5 per cent from 12 per cent.
The GST Council during its meeting on December 21, 2024, is likely to slash the rate on readymade garments in a staggered manner based on pricing, according to an official. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
