How much tax structure will change in the next generation GST reforms, which are expensive to know about food and drinks to TV AC.

Prime Minister Narendra Modi made several major announcements on Independence Day, including a sign of great relief on GST. PM Modi has announced ‘Next-Jen’ GST that ordinary people can get a great relief on Diwali. It is reported that the central government has proposed to convert the current GST system of 4 tax page into 2 tax sheets. The current system of 5, 12, 18 and 28 percent is taxed only 5 and 18 percent. In addition, however, a high -tax framework will be applied to choose the dismantling of objects (sentence -goods), which can be 40%. The ‘demittering objects’ include things that are considered harmful to society. Such as cigarettes, gutkha, tobacco, online game, etc. According to the government, the center prepared a detailed proposal and sent three existing GST to specific ministers (glue). Before considering the proposal by the GST Council, the Minister will review it. If this proposal applies, it will be the biggest change in GST rates after 2017, which will hold a large number of middle class, farmers and large industries before the festive season for a large number of middle class, farmers and large industries. Common people can get great relief, it is said about the new GST system that it can provide the ordinary people with great relief. Government sources are cited and said that it is proposed to keep food items, medicine, education and everyday items in the zero or 5%category so that they can become economical. At the same time, it is suggested that GST on agriculture equipment be reduced from 12% to 5%. It is also suggested to reduce GST from 18% to 5% or zero at Insurance Premium, which is long asked. Union Minister Nitin Gadkari also recommended relief on insurance services. According to sources, GST tariffs on household items such as TV, AC, fridge and washing machines can be reduced from the current 28% to 18%. At the same time, 40% taxes can be charged on online games and some other ‘Demerit goods’. What will happen to 12% and 28% plate? As you read above, the proposal has a Tweeslab GST structure. The current 4-level system will replace two-Lab rates of 5% and 18%. In such a situation, the question is, what will happen to 12% and 28% plate? How much tax is charged on the goods that come in both of these pages? It is told that 99% of items of 12% of the plate are expected to be brought to 5%. That is, it can be a great relief for ordinary people. At the same time, it is said that about 28% record that 90% of items will be brought to 18% below it. Only luxury items and demerit items will remain in a high tax page. How many GST is suggested on which item? Essential items: GST can be kept zero or 5% on food grains, medicines, education and daily items. Domestic needs: GST on TV, fridge, washing machine can be reduced from 28% to 18%. Agricultural equipment: GST on sprinkler and agricultural machinery can be reduced from 12% to 5%. Insurance services: GST on insurance services can be reduced from 18% to 5% or zero. Health Services: It is suggested to reduce GST on medicine and medical devices, so it becomes economical. Petroleum Products: Petroleum products are currently excluded from GST. Special rates: There is probably no change in special rates of 0.25% on diamonds and 3% on gold and silver. Online Game: Online games will be considered an ‘unqualified’ activity and placed in 40% GST plate. … What other suggestions include? It is suggested to determine the inverted fee structure in the textile and fertilizer sector. There is a need to solve classification -related problems in areas such as auto parts and snacks. Administrative and compliance reforms are also proposed. It is proposed to approve 95% of applications within three days through technical process for uninterrupted GST registration. Under the pre-filled GST yield system, pre-filled GST yields are proposed to reduce hand errors and maladjustment. The action of automated exporters for exporters is also proposed. Will the treasures of the government decline? The goods below 18% plate, which talks about the current GST income share, brings the most revenue to the Government Tour. 65% of government revenue comes from this category items. The second most expensive items are 28% tax sheets, from which 11% revenue is obtained. 12% tax plate receives 5% revenue and 5% tax plate receives 7% revenue. The center hopes that any possible loss of income will be repaid by an increase in the compliance and expansion of the tax base. At the moment, a proposal has been prepared, which will review a group of three ministers (glue). Their recommendations will be sent to the GST Council, which can accept, change or reject it. The GST Council can meet in September or October. That is, there is every possibility of getting good news about Diwali.