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Government Think Tank Proposes End of GST Exemption to Address Unequal Benefits

  • A government think tank has proposed the end of GST exemption.
  • The think tank argues that tax exemptions benefit the rich more than the lower strata of consumers.
  • The Central Board of Indirect Taxes and Customs chairman supports the end of exemptions to simplify the GST structure.
  • Currently, essential and basic goods and services are exempt from GST.
  • The think tank’s study found that exempted items account for only 20% of a low-income household’s monthly expenditure.
  • There are currently nine tax slabs in GST.
  • The study considered 123 major groups of items to determine the distributional impact of taxes and exemptions.
  • The lowest income households spend around 20% of their money on GST-exempt items.
  • The lowest income group spends around 35% of their money on items taxed at 5% GST.


Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.


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