Latest news with #GSTCouncil
News18
11 hours ago
- Business
- News18
GST Rate Cut Loading? Govt Weighs Relief On Pulses, Tea, Besan After Record Revenues
Last Updated: GST Rate Cut News: The government is considering a potential cut in GST rates on essential items such as pulses, puffed rice, tea, and besan GST Rate Cut: The government is considering a potential cut in GST rates on essential items such as pulses, puffed rice, tea, and besan, according to official sources. Sources say a proposal is under discussion to reduce the 12% GST rate slab substantially. This move is expected to lower prices of many daily-use products that are part of every household's monthly expenses, especially for middle-class and low-income families struggling with rising costs. With GST collections at all-time highs, authorities believe there is fiscal space to offer relief to the common man, sources told News18. The Goods and Services Tax collections grew 6.2 per cent year-on-year to Rs 1.85 lakh crore in June 2025 against Rs 1.73 lakh crore in June 2024. However, the GST collections dropped sequentially with the figures crossing the Rs 2.01 lakh crore-mark in May 2025. India's gross Goods and Services Tax (GST) collection for May 2025 reached Rs 2.01 lakh crore, marking a 16.4 per cent increase from the Rs 1.72 lakh crore collected in May 2024, according to recent data released by the Ministry of Finance. While the expected rate cut could exceed 8–9%, no final decision has been made yet. Several Opposition-ruled states, along with some BJP-led ones, have submitted formal requests for a reduction in GST on key daily-use products. A final call is expected to be taken during the GST Council meeting in July. The GST Council is chaired by Union Finance Minister Nirmala Sitharaman and includes finance ministers from all states and Union Territories with legislatures. An official date has not yet been announced, but the meeting is expected later this month. Media reports also suggest that the Council may discuss reducing GST on health insurance, which is currently taxed at 18%. The taxation of life insurance and health insurance premiums has been pending review and could be taken up during this meeting. First Published: July 02, 2025, 12:23 IST
India Today
16 hours ago
- Business
- India Today
Ghee, soap and snacks to get cheaper? Big GST cut likely, say sources
In what could bring major relief to middle- and lower-income households, the central government is seriously considering a restructuring of the Goods and Services Tax (GST) slabs, sources told India Today. A key proposal under discussion is to either reduce the GST on certain essential items from 12% to 5% or to eliminate the 12% slab to sources, most of the items currently attracting 12% GST are goods commonly used in everyday life by ordinary citizens. These include products that feature heavily in the consumption patterns of middle-class and economically weaker plan under consideration involves reclassifying these items into the lower 5% tax bracket, effectively making them cheaper for end consumers. Alternatively, the government may choose to scrap the 12% slab entirely and reallocate items into existing lower or higher slabs. A final decision is likely to be taken at the upcoming 56th meeting of the GST Council. As per protocol, a 15-day notice is required before convening a Council meeting, but sources indicate that the session could take place later this move is expected to be politically significant, especially in a pre-election year, and could help ease inflationary pressure on essential goods consumed by a large section of the GST Council, chaired by the Union Finance Minister and comprising state finance ministers, holds the authority to recommend changes in tax the proposal goes through, it would mark one of the most significant overhauls of GST rates since the indirect tax system was rolled out in 2017.- EndsMust Watch
NDTV
16 hours ago
- Business
- NDTV
GST Relief For Middle Class Soon: Cheaper Toothpaste, Utensils, Clothes, Shoes
New Delhi: After a series of income tax concessions earlier this year, the Centre is now preparing to extend relief to middle and lower-income households in the form of a reduction in Goods and Services Tax (GST), sources have said. The Centre is considering eliminating the 12 per cent GST slab altogether or reclassifying many items currently taxed at 12 per cent into the lower 5 per cent bracket. According to sources, this restructuring would target items widely used by middle-class and economically weaker sections such as toothpaste and tooth powder, umbrellas, sewing machines, pressure cookers and kitchen utensils, electric irons, geysers, small-capacity washing machines, bicycles, readymade garments priced over Rs 1,000, footwear priced between Rs 500 and Rs 1,000, Stationery items, Vaccines, ceramic tiles and agricultural tools, among other things. If the proposed changes are implemented, many of these items will become more affordable. The government is also looking at a simplified and easy-to-comply GST. Financial Impact According to sources, the move will put a burden of Rs 40,000 crore to Rs 50,000 crore on the government, but it is prepared to absorb the initial impact. The rationale behind this hinges on an anticipated boost in consumption. The Centre believes that lower prices will drive higher sales, ultimately resulting in a tax base and increased long-term GST collections. Finance Minister Nirmala Sitharaman, in a recent interview, hinted at potential changes in GST rates, stating that the government was actively working towards a more rational structure and considering relief for the middle class on essential items. The Opposition Despite the Centre's push, there has been no consensus among the states. Under the GST, rate changes require endorsement from the GST Council, where each state has voting rights. Currently, opposition is being reported from Punjab, Kerala, Madhya Pradesh, and West Bengal. To date, voting has occurred only once in the history of the GST Council. Every other decision has been reached by consensus. The issue is expected to come up in the 56th GST Council meeting, which could be convened later this month. By rule, a minimum notice of 15 days must be given to convene the Council. The 12 per cent GST slab in India typically includes items that are of common use for middle and lower-income households, but which may not qualify as absolute essentials, which are taxed at 0 per cent or 5 per cent. List of commonly used goods and services under the 12 per cent GST slab: Tooth powder Sanitary napkins (originally taxed, now at 0 per cent, but related feminine hygiene items may still fall under 12 per cent) Hair oil Soaps (some categories, others are at 18 per cent) Toothpaste (some branded variants at 12 per cent, others at 18 per cent) Umbrellas Sewing machines Water filters and purifiers (non-electric types) Pressure cookers Cookware and utensils made of aluminium, steel (some are at 12 per cent) Electric irons Water heaters (geysers) Vacuum cleaners (low-capacity, non-commercial) Washing machines (small capacity) Bicycles Carriages for disabled persons Public transport vehicles (when sold, not for fare) Readymade garments (priced above Rs 1,000) Footwear priced between Rs 500 and Rs 1,000 Most vaccines Diagnostic kits for HIV, Hepatitis, TB Certain Ayurvedic and Unani medicines Exercise books Geometry boxes Drawing and colouring books Maps and globes Glazed tiles (basic, non-luxury variants) Ready-mix concrete Pre-fabricated buildings Agricultural equipment like mechanical threshers Packaged foods such as condensed milk, frozen vegetables (some variants) Solar water heaters
New Indian Express
a day ago
- Health
- New Indian Express
Welcome push to make insurance more accessible
The concerns were recently reiterated by the Union financial services secretary, M Nagaraju, who reminded insurers: 'There is a need to curb mis-selling and ensure premiums are low so that coverage can increase.' He underlined that quick settlement of claims is critical to restore faith in insurance products. A recent survey showed that health insurance premiums have soared 73 percent since 2020, while medical inflation has averaged a whopping 14 percent a year. The steep rise in premiums from pre-Covid levels and rising rejection rates have pushed a larger section of consumers to opt out of coverage altogether. An IRDAI report concedes that 11 percent of health insurance claims are usually denied, while 6 percent are kept pending for long. Apart from rejections, as many as half of all policy holders face issues such as partial approvals or delays while settling claims. To set things in order, the IRDAI needs to be well staffed and review the board decisions of insurers as a matter of routine. That things have been adrift is apparent from the fact that the regulator has been without a chairperson since this March. There is also the longstanding demand for the GST Council to waive the substantial 18 percent tax on premiums. Waiving GST for all health insurance products would be a good start towards greater affordability and broader coverage. It is high time the government removed at least some of the many hurdles in the path of this critical industry.
Mint
a day ago
- Business
- Mint
Centre, states collect ₹1.85 trillion in GST revenue in June—a 4-month low
New Delhi: Central and state governments collected ₹1.85 trillion in Goods and Services Tax (GST) revenue in June, reporting a 6.2% annual improvement, although the revenue receipt was the lowest in four months. Advertisement The moderation from the more than ₹2 trillion-level seen in the first two months of the current financial year comes on account of a sharp reduction in tax collection from domestic transactions. GST on imported items also witnessed some moderation in June. However, cumulatively, in the first quarter, Central and state governments collected ₹6.2 trillion before tax refunds, an improvement of 12% from the corresponding year-ago period, showed data shared by the finance ministry. In June, tax payers were given a refund of ₹25,491 crore. After adjusting for refunds, net revenue collection stood at ₹1.59 trillion, a 3.3% improvement annually. Experts said the June GST collections, coupled with a less than 4% growth in advance tax collection for the first quarter of 2025-26, indicate softening of demand and a cautious outlook. Advertisement 'One of the reasons could be conservative spending by consumers, which may improve in the next couple of months with the overall geopolitical situation improving,' said Pratik Jain, partner at Price Waterhouse and Co. Llp. Revenue collections in June represent the sales executed in May. India witnessed border tensions with Pakistan in May in the aftermath of the 22 April Pahalgam terror attack. India's Goldilocks situation The 11.8% GST revenue growth in the first quarter before adjusting for refunds gives a tax buoyancy of more than 1, which means India is still in a 'Goldilocks situation' amid global turmoil, said Vivek Jalan, partner at Tax Connect Advisory Services Llp. On Tuesday, the eighth anniversary of the 1 July 2017 rollout of GST, the finance ministry said in a statement that annual GST revenues had nearly tripled from ₹7 trillion in FY18 to ₹22 trillion in FY25. Advertisement 'Consistent double-digit growth signals not just a strengthening economy but a maturing, tech-driven tax ecosystem marked by better compliance, reduced leakages, and lower taxpayer burden,' said the ministry. Also Read | Tax rate revamp on GST Council agenda; India to push FATF to grey list Pakistan Prime Minister Narendra Modi on Tuesday said roll out of GST, which subsumed 17 central and state taxes into it, is reshaping India's economic landscape and stimulating growth. 'By reducing the compliance burden, it has greatly improved the ease of doing business, particularly for small and medium enterprises. GST has also served as a powerful engine for economic growth, while fostering true cooperative federalism by making states equal partners in this journey to integrate India's market,' Modi said in a social media post. The GST Council is expected to consider further reforms in the indirect tax's structure at its next meeting. It is expected to look into proposals for removing the 12% tax slab and shifting most of the goods and services to 5% and some to 18%. Advertisement
