Green signal for GST simplification: Medicines and essentials to get cheaper

NEW DELHI: The central government’s proposal to simplify indirect taxes by reducing Goods and Services Tax (GST) slabs from four to two has received approval from a ministerial panel.

Under the proposal, almost 99% of goods currently taxed at 12% will move to the 5% slab, while nearly 90% of goods under the 28% category will be brought down to 18%. This move is expected to lower the prices of medicines and essential commodities.

Samrat Choudhary, Deputy Chief Minister of Bihar and head of the six-member panel, said that the committee has recommended scrapping the 12% and 28% slabs, while retaining only 5% and 18%.

Goods and services beneficial to the common people will fall under the 5% GST slab. Standard goods will be taxed at 18%. Items considered harmful or non-essential will attract 40% GST, which will also apply to luxury cars.

Other members of the panel include Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K.N. Balagopal. The final decision will be taken at the GST Council meeting scheduled for the end of September.