The Group of Ministers (GoM) dedicated to GST rate rationalisation has announced sweeping changes to the current tax structure. Tax rates on essential commodities like 20-litre water bottles, bicycles, and exercise notebooks will now be reduced to 5 per cent, offering relief to the common man. The meeting, led by Bihar Deputy Chief Minister Samrat Chaudhary, forecasts a revenue surge of Rs 22,000 crore with these adjustments.
Meanwhile, luxury items like high-end wrist watches and shoes are set for increased taxation, jumping from 18 per cent to 28 per cent, if the recommendations are accepted by the GST Council. The GoM, which includes officials from various states such as Uttar Pradesh, Rajasthan, Karnataka, and Kerala, also deliberated on altering the tax brackets for over 100 items. With luxury and demerit goods facing potentially higher taxes, these changes may redefine purchasing power and consumption patterns across various segments.
(With inputs from agencies.).