A pivotal meeting of the GST Council, led by Finance Minister Nirmala Sitharaman, took place in Delhi on Wednesday, resulting in significant changes to the Goods and Services Tax (GST) structure. The council decided to eliminate the 12% and 18% tax rates, adopting a simplified two-tier system with rates of 5% and 18%. The new rates are scheduled to be implemented from September 22nd. This strategic shift in the GST framework is anticipated to bring relief to the general public.
Sitharaman stated that the primary goal was to benefit the common people. Essential goods were shifted to the 5% tax bracket or made tax-free. The meeting, which lasted for 10 hours, saw the participation and support of all state finance ministers, a demonstration of collaborative efforts. The revised GST rates aim to ease the financial burden on consumers and businesses.