- Indian PM Modi announced GST reforms and tax reductions by Diwali in October.
- Modi aims to reduce the tax burden with next-generation GST reforms.
- A group of ministers is preparing a report to simplify the GST structure.
- The government plans to change GST rates and reduce the number of brackets.
- Current GST rates are 5%, 12%, 18%, and 28% on most goods and services.
- Additional levies apply to demerit items like cigarettes and high-end cars.
- Citi estimates 20% of items fall under the 12% GST slab.
- Moving items to different slabs could result in a revenue loss of 500 billion rupees.
- The policy stimulus for households could reach 0.6%-0.7% of GDP in 2025-26.
Source: brecorder.com
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.
