The out-of-pocket expenses of those who consume cigarettes and tobacco are going to increase, in fact, the GST rates applicable on it may be increased. Before the GST Council meeting, the Group of Ministers (GoM), formed to rationalize the rates, has recommended increasing the GST on tobacco products from 28 percent to 35 percent. However, the final decision on this will be taken in the GST Council meeting to be held on 21st December this month.
Tobacco products will become expensive
According to PTI report, the Group of Ministers formed to rationalize GST rates on Monday recommended increasing the GST rate on harmful products like cigarettes and tobacco as well as cold drinks from the current 28 percent to 35 percent. If this decision is taken by the government, then there may be a huge jump in the prices of these products.
Changes in tax on clothes possible
Giving information in the report quoting an official, it has been said that the GoM has taken this decision under the chairmanship of Bihar Deputy Chief Minister (Bihar Deputy CM) Samrat Chaudhary. Let us tell you here that this GST rate of 35 percent will be in addition to the existing four slabs of 5%, 12%, 18% and 28%. The GOM has also recommended rationalization of tax rates on ready-made and expensive garments and also recommended changes in the rates of 148 items.
related news
The Group of Ministers has recommended 5 percent GST on readymade garments priced up to Rs 1,500, while 18 percent GST on garments priced between Rs 1,500 to Rs 10,000 and 28 percent GST on garments valued above Rs. Has been recommended.
GST Council meeting on 21 December
The report of the Group of Ministers recommending changes in GST rates will be submitted to the GST Council and the final decision on it will be taken in the proposed meeting on December 21. Let us tell you that the 55th meeting of GST Council is going to be held in Jaisalmer, Rajasthan under the chairmanship of Finance Minister Nirmala Sitharaman.
GST was implemented in 2017
Goods and Services Tax (GST) was implemented across the country in 2017 in place of the old indirect tax system. This is considered to be the biggest tax reform in the country since independence. The government had passed GST on 29 March 2017 and after this this new tax system was implemented on 1 July 2017. With this, 17 taxes like VAT, excise duty (on many things) and service tax were abolished. According to the Central Government, GST implemented 7 years ago has helped in reducing the tax burden on the people of the country.
