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Mint
a day ago
- Business
- Mint
GST Council may eliminate 12% tax slab, to shift items to 5% and 18% rates: Report
The GST Council may soon consider a plan to rationalise the goods and services tax rates, reducing them from four to three by eliminating the 12 per cent tax slab, according to a report by the Hindustan Times, citing people aware of the development. The officials and experts advising the Group of Ministers (GoM) over rate rationalisation have reached a 'near consensus' that the current 12 per cent tax slab does not hold much relevance now and the items falling under this could be shifted to either 5 per cent or 18 per cent slab. 'This could be the most plausible way to undertake a revenue neutral tax rate rationalisation exercise. However, the GST Council has to take a final call,' the report quoted a person aware of the development. The proposal to remove 12 per cent tax slab has been supported by most Union and state government officials, experts and GoM representatives, it said. Presently, there are four tax slabs under the GST regime in India – 5 per cent, 12 per cent, 18 per cent and 28 per cent. Under the 12 per cent tax slabs goods such as such as condensed milk, caviar and caviar substitutes prepared from fish eggs, drinking water packed in 20 litre bottles, walkie talkies, tanks and other armoured fighting vehicles, contact lenses, cheese, dates and dried fruits, frozen vegetables, sausages and similar meat products, pasta, jams and jellies, fruit juice-based drinks, namkeens including bhujiya, curry paste, mayonnaise, tooth powder, feeding bottles, carpets, umbrellas, caps, bicycles, specific household utensils, furniture made of cane or wood, pencils and crayons, handbags and shopping bags made of jute or cotton, footwear priced lower than ₹ 1,000, diagnostic kits, and marble and granite blocks are currently included. Meanwhile services such as specified construction work, hotel rooms up to ₹ 7,500 per day, transport of passengers by air in non- economy classes, some types of multimodal transportation, and certain professional, technical and business services are included in the 12 per cent tax slab. The GST Council is expected to meet either in June or July. The apex decision-making body under the indirect tax regime comprises the Union Finance Minister and Finance Ministers (or senior ministers) of states. The Council last met in December 2024 and is expected to discuss proposals related to rate rationalisation and other issues, including the ease of compliance, the report said. The GoM on rate rationalisation was formed on September 24, 2021, after the decision of the 45th GST Council meeting in Lucknow. Its first convenor was convener was former Karnataka CM Basavaraj S Bommai. In November 2023, it was convened by UP Finance Minister Suresh Kumar Khanna. Subsequently, on February 27, 2024, Samrat Chaudhary, the deputy CM of Bihar, took on the role of convener.
Hindustan Times
2 days ago
- Business
- Hindustan Times
GST Council may take up removal of 12% rate
The GST Council could discuss, at its next meeting, a proposal to rationalise Goods and Services Tax (GST) rates by reducing the number of slabs from the current four to three by removing the 12% tax slab, people familiar with the matter said, asking not to be named. There is a 'near consensus' among officials and experts advising the Group of Ministers (GoM) discussing rate rationalisation that the 12% slab has little continued relevance, and essential items used by common people could be placed in preceding slab of 5% and rest could be shifted to the next 18% slab, the people added. 'This could be the most plausible way to undertake a revenue neutral tax rate rationalisation exercise. However, the GST Council has to take a final call,' one of the people said. The GST Council, which is the apex decision-making body on indirect tax regime, is expected to meet either in June-end or July. The body, comprising the Union finance minister and finance ministers (or senior ministers) of states, has not met since December 2024 and will likely consider proposals related to the rate rationalisation along with other issues, including further ease of compliance, the people cited above said. The GoM on rate rationalisation was first constituted on September 24, 2021 as per the decision of the 45th GST Council meeting held in Lucknow with the mandate of rate rationalisation, simplification of tax structure and correcting duty inversions. At first ,its convener was former Karnataka CM Basavaraj S Bommai. Later, in November 2023, the convenorship went to UP finance minister Suresh Kumar Khanna. After that Bihar deputy CM Samrat Chaudhary became its convener on February 27, 2024. The decision to do away with the 12% slab is endorsed by most Union and state government officials, experts and GoM representatives , the first person added. Currently, India has a four-slab GST regime – 5%, 12%, 18% and 28%, broadly following the principle of lower tax on necessities and higher tax on luxury items. The poor are protected with zero tax on essentials such as unpacked food items, salt, milk, fresh vegetables, educational and health services. The 12% tax slab includes items such as condensed milk, caviar and caviar substitutes prepared from fish eggs, drinking water packed in 20 litre bottles, walkie talkies, tanks and other armoured fighting vehicles, contact lenses, cheese, dates and dried fruits, frozen vegetables, sausages and similar meat products, pasta, jams and jellies, fruit juice-based drinks, namkeens including bhujiya, curry paste, mayonnaise, tooth powder, feeding bottles, carpets, umbrellas, caps, bicycles, specific household utensils, furniture made of cane or wood, pencils and crayons, handbags and shopping bags made of jute or cotton, footwear priced lower than ₹1,000, diagnostic kits, and marble and granite blocks. Services attracting 12% GST include specified construction work,hotel rooms up to ₹7,500 per day, transport of passengers by air —with or without accompanied belongings -- in non- economy classes, certain types of multimodal transportation, and specific professional, technical and business services. Experts welcomed the idea of scrapping the 12% slab. Saurabh Agarwal, tax partner at consultancy firm EY India said: 'The upcoming GST Council meeting will focus on rate rationalisation, with indications that the Council may eliminate the 12% slab in favour of a simplified three-rate GST structure. This change could enhance compliance, reduce classification disputes, and improve efficiency.' Agarwal added that the exercise will require balance, because revenue neutrality (the changes not having any impact on the overall tax revenue) is key. 'Revenue neutrality is essential, as the 12% slab currently includes mass-consumption goods and industrial inputs. Transitioning these to the 5% or 18% slabs will have varied revenue implications, requiring careful assessment to maintain accessibility. The inflationary impact is also a concern. Moving items from the 12% to the 18% slab could raise costs for semi-essential goods, potentially burdening consumers. A phased approach is necessary to mitigate price increases.' Additionally, classification challenges may arise during the transition, leading to interpretational issues for businesses, Agarwal said. 'Clear guidelines will be crucial to ensure a smooth shift. Aligning with global practices, many advanced GST/VAT regimes use one or two standard rates. Thus, adopting a three-rate structure would bring India closer to these standards while allowing for socio-economic flexibility,' he said. 'In summary, while a simplified GST structure is promising, its success will depend on careful design and stakeholder consultation.' According to experts, continued growth in gross GST revenues supports the need for rate rationalisation. Gross GST revenues saw over 9% jump to ₹22,08,861 crore in 2024-25 as compared to ₹20,18,249 crore in 2023-24. The new financial year saw record collection in the month of April this year at ₹2,36,716 crore. The revenue in the next month (May 2025) also was the third highest ever at ₹2,01,050 crore.
Time of India
2 days ago
- Business
- Time of India
UP 1st state to give 20% quota to Agniveers in UP Police; applicants to get 3-year age relaxation
Representative image LUCKNOW: In a landmark decision on Tuesday, the state cabinet approved a proposal to provide a 20% horizontal reservation to former Agniveers in the recruitment process for various posts in the Uttar Pradesh Police (UPP). This reservation will apply to direct recruitment for the positions of police constable, PAC, mounted constable, and fireman. While several states and central forces have introduced reservation policies for Agniveers-such as Haryana and Odisha offering 10%-Uttar Pradesh has taken the lead by implementing a 20% horizontal reservation, setting a new benchmark at the national level. The first recruitment batch under this policy is expected to be initiated in 2026, coinciding with the return of the first batch of Agniveers. This significant move by the Yogi govt aims to not only provide career opportunities to former Agniveers but also to bolster the state's security forces with well-trained, disciplined, and motivated personnel. Reservation will be applicable across all categories State finance minister Suresh Kumar Khanna said that the primary objective of this decision is to ensure meaningful post-service employment opportunities for Agniveers who complete their four-year tenure under the Agnipath scheme. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like ¿Cómo obtener un segundo ingreso invirtiendo $100 con IA? [CFD] Digital Group Prueba ahora Undo He emphasized that this reservation will be applicable across all categories—General, SC, ST, and OBC—within their respective groups. For example, an SC Agniveer will get the benefit within the SC category, and similarly for OBC and other groups. He also announced that former Agniveers applying for these posts will be eligible for a three-year age relaxation. This decision not only honours the service of Agniveers but also ensures their continued contribution to national security in a new capacity. The Agnipath scheme, introduced by the govt of India in 2022, allows youth to serve in the Indian Army, Air Force, and Navy as Agniveers for a period of four years. The scheme includes six months of training, and upon completion, 25% of Agniveers are inducted into regular service based on performance, while the remaining 75% are encouraged to pursue other career opportunities. The first batch of Agniveers is likely to benefit from the new postings about to be rolled out soon. At the time of the scheme's launch, Chief Minister Yogi Adityanath had said that former Agniveers would be given preference in the Uttar Pradesh Police and PAC. (The victim's identity has not been revealed to protect her privacy as per Supreme court directives on cases related to sexual assault)
The Hindu
3 days ago
- General
- The Hindu
Uttar Pradesh Cabinet approves 20% reservation for former Agniveers in police recruitment
The U.P. government on Tuesday (June 3, 2025) approved a proposal to provide 20% reservation to former Agniveers for recruitment to various posts in the Uttar Pradesh Police. The horizontal reservation will apply in direct recruitment as Police Constable, Provincial Armed Constabulary (PAC), Mounted Constable, and Fireman. 'The main objective of this decision is to ensure meaningful post-service employment opportunities for Agniveers, who complete their four-year tenure under the Agneepath scheme. This reservation will be applicable across all categories — General, SC (Scheduled Caste), ST (Scheduled Tribe), and OBC (Other Backward Class) —within their respective groups. For example, an SC Agniveer will get the benefit within the SC category, and similarly for OBC and other groups,' Suresh Kumar Khanna, U.P. Finance Minister, said after the State Cabinet meeting. The U.P. government also said that former Agniveers applying to these posts would be eligible to a three-year age relaxation. The first batch of recruitments under the policy is expected to be initiated in 2026, coinciding with the return of the first batch of Agniveers. 'This decision not only honours the service of Agniveers but also ensures their continued contribution to national security in a new capacity,' the State government said in a statement. The Agneepath scheme, introduced by the Union government, enables youth to serve in the Indian Army, Air Force, and Navy as Agniveers for a period of four years. In July 2024, Uttar Pradesh Chief Minister Yogi Adityanath declared that the State government would provide reservations to Agniveers in government services. 'When Agniveers return after their service, the Uttar Pradesh government will provide these youth the facility of adjustment in the police service and PAC on a priority basis,' Mr. Adityanath had said.
India Gazette
3 days ago
- Business
- India Gazette
Uttar Pradesh govt announces 20% horizontal reservation for ex-Agniveers in police department
Lucknow (Uttar Pradesh) [India], June 3 (ANI): The Uttar Pradesh government will provide 20 per cent horizontal reservation to ex-Agniveers in recruitment to several positions in the state police force. This announcement was made by Uttar Pradesh Minister Suresh Kumar Khanna, who said that today it was decided to give 20 per cent horizontal reservation to Ex-Agniveers. Addressing a press conference after the Cabinet meeting, Khanna stated, 'Regarding the 20 per cent reservation to Ex-Agniveers in Uttar Pradesh police force... You are well aware that the Government of India had introduced a very ambitious scheme, Agneepath, under which the age limit for employing Agniveers and to strengthen them in every way was kept between 17.5 to 21.5 years for 4 years, and after that they were sent off after giving incentives... Today, it has been decided to give 20% horizontal reservation to is a big decision in itself. A provision for 3 years relaxation has also been made for them...' Meanwhile, Uttar Pradesh minister Nand Gopal Gupta 'Nandi' stated that the Council of Ministers has approved the creation of a letter of comfort for establishing a new unit for the production of frozen ready-to-eat food items to be set up by Haldiram Snacks in Gautam Buddha Nagar. He said, 'A meeting of the high-level committee was held on 25.2.2025. In this, a proposal was made to issue a letter of comfort to Haldiram Snacks. The Council of Ministers approved the creation of a letter of comfort for establishing a new unit for the production of frozen ready-to-eat food items to be set up by Haldiram Snacks in Gautam Buddha Nagar...' A cabinet meeting was held today in Lucknow under the chairmanship of Uttar Pradesh Chief Minister Yogi Adityanath. Earlier today, Uttar Pradesh Deputy Chief Minister Brajesh Pathak said, 'Under the leadership of PM Modi, the nation has progressed a has become the fourth largest economy and India will become 'Viksit Bharat' by 2047...' (ANI)
