Prime Minister Narendra Modi on Sunday said that the next-generation GST reforms will bring double benefits for citizens across the country. Addressing an event to inaugurate two national highway projects in Delhi, the PM also sought cooperation of states in implementing the GST reforms.
He said that the centre has already circulated the draft of the next-generation GST reforms among states, and urged them to cooperate so that it can be implemented before Diwali. He said the reform in GST would benefit poor and middle-class people, and small and big businesses.
The Prime Minister said that his government intends to make the GST law simpler and revise tax rates. During his Independence Day speech on 15th August, PM Modi had announced the proposal to reform the GST law. “For us, reform means the expansion of good governance,” he said.
At present, there are four GST slabs, 5%, 12%, 18% and 28%. Reportedly, the government is reducing the number of GST slabs by removing the 12% and 28% slabs. Nearly 90% of items currently in the 28% slab will move to 18% slab, and almost all goods from the 12% category will shift to 5%. There will be a 40% slab for certain ‘sin products’, like tobacco and pan masala.
