
Next Gen GST precursor to eventual single tax slab GST: Sources
They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats.
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The Print
40 minutes ago
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When the revamped structure is approved by the GST Council, 99 per cent of items in the current 12 per cent slab will move to the 5 per cent bracket. Similarly, almost 90 per cent of goods and services that are currently charged at 28 per cent would shift to an 18 per cent tax rate. While the presently nil or zero per cent GST tax is charged on essential food items, 5 per cent is charged on daily use items, 12 per cent on standard goods, 18 per cent electronics and services and 28 per cent on luxury and sin goods, the revamped GST regime will have two slabs plus a special rate of 40 per cent for luxury and sin goods, they said. New Delhi, Aug 15 (PTI) The central government has proposed just two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the current indirect tax regime by Diwali this year, highly placed sources said. The special rate of 40 per cent would be levied only on seven items, sources said, adding tobacco would also fall under this rate, but the total incidence of taxation would continue at the current 88 per cent. The revamped GST is expected to give a big boost to consumption, offsetting the revenue loss that may occur from the rate revision, they said. Under the present GST structure, which came into being after central and state levies were subsumed beginning July 1, 2017, the highest 65 per cent tax collections happen from the 18 per cent levy. The top tax bracket of 28 per cent on luxury and sin goods contributes 11 per cent of the revenue, while the 12 per cent slab accounts for just 5 per cent of the revenue. The lowest 5 per cent levy on essential daily-use items contributes 7 per cent of the total GST kitty. High labour-intensive and export-oriented sectors like diamonds and precious stones would continue to be taxed as per the existing rates. PTI JD ANZ BAL BAL This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.


News18
an hour ago
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District authorities conduct financial literacy camp in Thane
Agency: PTI Thane, Aug 17 (PTI) A financial literacy camp was held in Maharashtra's Thane district as part of the administration's ongoing campaign to create awareness among citizens in rural areas about social security schemes and prevention of fraud, an official said on Sunday. On the directions of the Department of Financial Services, Ministry of Finance, and the Reserve Bank of India (RBI), a special financial literacy campaign is being implemented in all gram panchayats of the district from July 1 to September 30, the official said. As part of this initiative, a camp was organised at Asangaon in Shahapur taluka on August 13, he said. 'The objective of the campaign is to create financial awareness among rural citizens, women, senior citizens and economically weaker sections by focusing on renewal of KYC, digital financial literacy, responsible borrowing, prevention of fraud and information on social security schemes such as Atal Pension Yojana," the official said. view comments First Published: August 17, 2025, 15:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.