Govt. proposes GST structural simplification |
There has been a lot of talks about the newly implemented Goods and Services Tax. It`s been almost a 1 and half years and the experts still have mixed opinion about it and the public is confused. The much anticipated simplification of the Goods and Services Tax is likely to happen soon. Indian Prime Minister Narendra Modi has hinted, the government wants to ensure that `99 percent things` attract sub-18 percent GST slab. Prime Minister Modi`s promise would require cutting tax rates on about 25 categories to 18% or lower from 28%. Currently, 39 of the around 1,378 tariff categories are taxed at 28%. Modi indicated that the 28 percent slab of GST would only be restricted to a few select items, such as luxury goods. Efforts will be made to ensure that 99 percent of all items, including almost all items used by the common man, would be kept at a GST slab of 18 per cent or less. Modi`s assurance of tax cuts comes in the wake of the opposition Congress winning in three of the five states that went to assembly polls recently, indicating that the national elections early next year may not be an easy battle for the ruling National Democratic Alliance led by him.
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