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Will the common man have 'good days'; Will inflation come down? Will loan repayments be reduced?
GST Rates: The central government has started preparations to present a proposal for a significant reduction in GST rates to the GST Council in the coming days. Union Finance Minister Nirmala Sitharaman herself announced this at a newspaper award ceremony.
The Goods and Services Tax was implemented in India in 2017. At that time, the revenue neutral rate was 15 percent. Now that level has come to around 11.5 percent. Therefore, it is easily possible to reduce the GST rates. Sitharaman has said that the central government is sending a proposal to the GST Council in this regard soon.
A group of ministers of finance ministers of six states of the country was formed in this regard under the chairmanship of Bihar Deputy Chief Minister and Finance Minister Samrat Chaudhary. This group of ministers submitted its report in the last GST Council meeting. This report also recommends reducing the GST rates.
Now that the central government is also positive about the recommendation, it is hoped that the GST rates will come down significantly in the next few months. In this year's budget speech, the Finance Minister had exempted income up to Rs 12 lakh from income tax.
This is likely to increase demand and boost the economy. If the GST rates are reduced, the prices of both goods and services will also come down and it is estimated that more money will come into the hands of the common man and the economy will get a booster dose once again.
When the government changes the tax system, the concept of revenue neutral rate is taken into account. The rate at which there will be no burden on the government exchequer after changing the tax rates is called revenue neutral rate. Before the implementation of GST, the VAT system existed in the country. In this, the central and state governments used to levy indirect taxes in different ways. When GST was implemented, many taxes like VAT system, excise duty, zakat were abolished. The abolition of these taxes was going to reduce the government's revenue. But instead, a single tax, GST, was implemented.
In such a situation, according to the calculations made about the rate at which GST should be implemented, if GST is imposed at a rate of 15 percent, as per the state of the government treasury in 2017, there would not be much increase in the treasury. In reality, GST was imposed at different rates on various things. Slabs like 5 percent, 12 percent, 18 percent and 28 percent were decided. While deciding this, the basic basis that was taken to ensure that there would be no reduction in the total income of the government was the revenue neutral rate. As per the state of 2017, this rate was 15 percent. Now, by 2025, both the state of the government's treasury and the tax system have stabilized to some extent. Therefore, this revenue neutral rate has been reduced to 4% and the Group of Ministers has proposed to give its benefit to the common people.
GST Rates: The central government has started preparations to present a proposal for a significant reduction in GST rates to the GST Council in the coming days. Union Finance Minister Nirmala Sitharaman herself announced this at a newspaper award ceremony.
The Goods and Services Tax was implemented in India in 2017. At that time, the revenue neutral rate was 15 percent. Now that level has come to around 11.5 percent. Therefore, it is easily possible to reduce the GST rates. Sitharaman has said that the central government is sending a proposal to the GST Council in this regard soon.
A group of ministers of finance ministers of six states of the country was formed in this regard under the chairmanship of Bihar Deputy Chief Minister and Finance Minister Samrat Chaudhary. This group of ministers submitted its report in the last GST Council meeting. This report also recommends reducing the GST rates.
Now that the central government is also positive about the recommendation, it is hoped that the GST rates will come down significantly in the next few months. In this year's budget speech, the Finance Minister had exempted income up to Rs 12 lakh from income tax.
This is likely to increase demand and boost the economy. If the GST rates are reduced, the prices of both goods and services will also come down and it is estimated that more money will come into the hands of the common man and the economy will get a booster dose once again.
When the government changes the tax system, the concept of revenue neutral rate is taken into account. The rate at which there will be no burden on the government exchequer after changing the tax rates is called revenue neutral rate. Before the implementation of GST, the VAT system existed in the country. In this, the central and state governments used to levy indirect taxes in different ways. When GST was implemented, many taxes like VAT system, excise duty, zakat were abolished. The abolition of these taxes was going to reduce the government's revenue. But instead, a single tax, GST, was implemented.
In such a situation, according to the calculations made about the rate at which GST should be implemented, if GST is imposed at a rate of 15 percent, as per the state of the government treasury in 2017, there would not be much increase in the treasury. In reality, GST was imposed at different rates on various things. Slabs like 5 percent, 12 percent, 18 percent and 28 percent were decided. While deciding this, the basic basis that was taken to ensure that there would be no reduction in the total income of the government was the revenue neutral rate. As per the state of 2017, this rate was 15 percent. Now, by 2025, both the state of the government's treasury and the tax system have stabilized to some extent. Therefore, this revenue neutral rate has been reduced to 4% and the Group of Ministers has proposed to give its benefit to the common people.
The Goods and Services Tax was implemented in India in 2017. At that time, the revenue neutral rate was 15 percent. Now that level has come to around 11.5 percent. Therefore, it is easily possible to reduce the GST rates. Sitharaman has said that the central government is sending a proposal to the GST Council in this regard soon.
A group of ministers of finance ministers of six states of the country was formed in this regard under the chairmanship of Bihar Deputy Chief Minister and Finance Minister Samrat Chaudhary. This group of ministers submitted its report in the last GST Council meeting. This report also recommends reducing the GST rates.
Now that the central government is also positive about the recommendation, it is hoped that the GST rates will come down significantly in the next few months. In this year's budget speech, the Finance Minister had exempted income up to Rs 12 lakh from income tax.
This is likely to increase demand and boost the economy. If the GST rates are reduced, the prices of both goods and services will also come down and it is estimated that more money will come into the hands of the common man and the economy will get a booster dose once again.
When the government changes the tax system, the concept of revenue neutral rate is taken into account. The rate at which there will be no burden on the government exchequer after changing the tax rates is called revenue neutral rate. Before the implementation of GST, the VAT system existed in the country. In this, the central and state governments used to levy indirect taxes in different ways. When GST was implemented, many taxes like VAT system, excise duty, zakat were abolished. The abolition of these taxes was going to reduce the government's revenue. But instead, a single tax, GST, was implemented.
In such a situation, according to the calculations made about the rate at which GST should be implemented, if GST is imposed at a rate of 15 percent, as per the state of the government treasury in 2017, there would not be much increase in the treasury. In reality, GST was imposed at different rates on various things. Slabs like 5 percent, 12 percent, 18 percent and 28 percent were decided. While deciding this, the basic basis that was taken to ensure that there would be no reduction in the total income of the government was the revenue neutral rate. As per the state of 2017, this rate was 15 percent. Now, by 2025, both the state of the government's treasury and the tax system have stabilized to some extent. Therefore, this revenue neutral rate has been reduced to 4% and the Group of Ministers has proposed to give its benefit to the common people.
