A meeting of Group of Ministers (GoM) on GST rate rationalisation on Thursday, August 21, ended with state finance minister accepting the Centre’s plan to reduce the number of tax slabs from 4 to 2.
28% and 12% slabs will be removed as part of the proposal. Under the new GST structure, merit goods and services will attract 5 per cent GST, while most other items will come under 18 per cent standard rate.
Sin goods like tobacco and alcohol will attract 40 per cent GST.
Notably, PM Modi, during his Independence Day speech, had said that this Diwali will be a double Diwali for Indians due to GST reforms easing the burden on Indian taxpayers.
