New GST slab: What will become cheaper and which things will become expensive, where will you get relief, and where can you face trouble

GST Council: It is proposed that about 99% of the goods, which are currently in the 12% slab, should be shifted to the 5% slab. Apart from this, about 90% of the goods, which are currently in the 28% GST slab, will be considered to be brought into the 18% slab.

GST Council Meeting:  The two-day meeting of the GST Council has started on September 3. This meeting has been called ahead of schedule and important decisions are expected to be taken in it regarding GST reform. Currently, there are four slabs in the GST system, but the council is considering simplifying this structure. It is proposed that about 99% of the items, which are currently in the 12% slab, should be shifted to the 5% slab. Apart from this, about 90% of the goods, which are currently included in the 28% GST slab, will be considered to be brought to the 18% slab. It is believed that the final decision can be taken in the meeting keeping in mind the announcement made by Prime Minister Narendra Modi from the ramparts of the Red Fort.

What will become cheaper:

If the GST Council meeting removes the 12% and 28% slabs and brings these goods into the 5% and 18% slabs, then the prices of these goods may come down:

*Goods falling in 12% to 5% slab

Processed food products (like packaged sweets, namkeen, tomato sauce, papad etc.)

Readymade garments and footwear

Household items (like washing powder, brush, fan etc.)

Furniture, Plastic Products and Electrical Accessories

 

*Goods falling in 28% to 18% slab

Household electronics (like TV, fridge, AC, washing machine)

Two-wheelers and Cars (Mid Segment)

Cosmetic products and perfumes

Paints, cement and construction materials

What will be expensive

However, according to reports, after the change in GST slab, there are some things which will become very expensive. That is, the government will increase the tax on those things. This includes harmful items like alcohol and luxury items.

 

Obviously, its direct benefit will be given to consumers in the form of cheaper prices and the industry will also get an opportunity to increase sales. This is being considered a big step towards promoting domestic industries. If consumption is promoted at the domestic level, then its direct impact can be seen from manufacturing to employment. This is the reason why America is also taking such steps to save its industries amid trade tariff tensions.