Goodbye To Confusion: The New GST Plan That Could Transform How You Shop

The government of India proposes to rationalize GST rates. The plan is to simplify the complex tax structure system and reduce the prices of day-to-day goods used by every household, thus making life easier for millions of consumers across lower- and middle-income families. By combining the existing multiple GST rates into two primary slabs, 5% and 18%, this restructuring in GST tries to create a more straightforward and consumer-centric tax structure.

Under this latest GST plan, many of the daily used which are currently taxed at 12% and 28% will be shifted to lower tax slab of 5%. 

Essentials food items, medicines, and household goods are likely to fall under the 5% slab. It directly eases the financial burden on the majority of consumers. This alteration in tax slab is likely to make frequently purchased products significantly more affordable through low cost for millions of Indian households, thus assisting middle- and low-income families to manage their financial budgets in a more profound way.

Thus, simplifying GST slabs will also support businesses in pricing their products more accurately, eradicating confusion and removing hidden taxes that gather along the supply chain, a phenomenon known as cascading tax. This drop in cascading taxes is likely to further reduce retail prices, thus creating substantial savings for the end consumer.

Additionally, the reform increases the affordability for students and families by lowering GST rates on educational supplies and other basic requirements. 

Also Read: The Hidden Reason Your Food Might Get Cheaper: A Major GST Change For India’s Farmers