Our Bureau
New Delhi
The Central Government has made a big decision this Wednesday, on September 3rd, ending the complicated Goods and Services Tax slabs and have them trimmed it down to just two slabs now with 5% and 18%. This new measure will ease the headaches of small traders and common man, as it will mean more money in their pockets.
The new structure of the GST will be implemented by the government later this month on September 22nd. As these new slabs get implemented, the government has high expectations that they will boost the economy and will generate a revenue of around Rs 48,000 crore.
In her recent post on her social media account, Union Finance Minister Nirmala Sitharaman stated that the GST council has approved the Next-Generation GST Reforms that Prime Minister Narendra Modi announced in his Independence Day speech. These reforms will be mainly focused on easing the living for citizens across the nation.
“Hon’ble Prime Minister Shri Narendra Modi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort. Working on the same principle, the GST Council has approved significant reforms today. These reforms have a multi-sectoral and multi-thematic focus, aimed at ensuring ease of living for all citizens and ease of doing business for all,” the Finance Minister wrote.
Due to these new changes the biggest tax cuts will come on food, medicines, essential items, farm goods, green energy, small cars and bikes. As per the new reforms, individual life and health insurance policies, including family floater, and 33 lifesaving drugs including anti-cancer medicines, which had a 12 per cent tax, will no longer be taxed. Along with that regular items used in medical needs like thermometer and glucometer have now been shifted to the 5% tax bracket.
