GST Relief for Middle Class Soon, Cheaper Toothpaste, Utensils, Cloths and Shoes | Toothpastes, utensils, clothes and shoes can be cheap: Government is considering bringing these items to 5% GST slab from 12%

Items used for common man like toothpaste, utensils, clothes, shoes may soon be cheap. After giving several concessions in income tax earlier this year, the Central Government is now preparing to give relief to the middle-class and lower-incoured family by cutting Goods and Services Tax i.e. GST.

According to reports, the government can bring 12% GST slab completely eliminate or currently 12% tax items into 5% slab. According to sources, this restructuring will include the items coming in the use of middle-class and economically veir section.

These include toothpaste and tooth powder, umbrellas, sewing machines, pressure cooker and kitchen utensils, electric ironing, geyser, small-capacity washing machines, bicycles, readymade clothes worth more than Rs 1,000, readymade clothes, 500 to Rs 1,000, shoes, stationery items, vexine, circles and agrarian tools.

This step will cost the government a burden of ₹ 50,000 crore

If the proposed changes apply, many of these items will become cheap. The government is also considering Easy-to-Camplaya i.e. easy GST. According to sources, this step will cost the government to Rs 40,000 crore to Rs 50,000 crore, but it is ready to withstand the initial impact.

This can increase consumption. The Center believes that low prices will increase sales, which will increase tax-base and grow in long-term GST collection. Finance Minister Nirmala Sitharaman recently indicated the possible changes in the GST rates in an interview, saying that the government is considering giving relief to middle-class on essential goods.

No consensus between states despite the pressure of the center

Despite the pressure of the center, there has not been a consensus among the states. GST requires recommendation from the GST Council to change rates, where every state has the right to vote. There are currently reports of protests from Punjab, Kerala, Madhya Pradesh and West Bengal.

Hope to discuss this issue in GST Council meeting

Till date, voting has been held only once in the history of GST Council. Every decision is taken by consensus. The issue is expected to be discussed in the 56th GST Council meeting, which can be called at the end of this month.

According to the rule, at least 15 days notice is given to call the council. In India, 12% GST slab usually consists of items that are of common use for middle-class and lower-incomplete family. However, the items that do not come in common use are levied 0% or 5% tax.

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