Jhajjar (Haryana) [India], August 16 (ANI): As the Centre proposes reforms to the Goods and Services Tax (GST), Congress leader Bhupinder Singh Hooda on Saturday said that fertilizers and pesticides, which currently fall under the 18 percent GST bracket, might receive some exemption.
“They have proposed two slabs: one at 5 percent and the other at 18 percent. Still, there are multiple slabs up to 28 percent. Eighteen percent applies to fertilizers and pesticides. So, it might get an exemption in this decision. However, there won’t be much in it. We will see when the full scheme comes out,” Hooda told ANI.
In a major initiative to simplify the GST structure, the Central Government has proposed scrapping the current 12 percent and 28 percent slabs, keeping only 5 percent and 18 percent rates, government sources said on Friday.
According to sources, 99 percent of items in the 12 percent slab are proposed to move into the 5 percent category, while 90 percent of items in the 28 percent slab are likely to shift to the 18 percent bracket.
Consumer goods currently in the 28 percent slab are also proposed to be moved to the 18 percent slab. Additionally, a new 40 percent slab has been proposed for “sin goods” such as tobacco and pan masala.
The reform aligns with Prime Minister Narendra Modi’s Independence Day announcement that people would receive a “very big gift” this Diwali, as part of a major GST overhaul.
“This Diwali, I am going to make it a double Diwali for you. This Diwali, you fellow countrymen are going to get a very big gift. In the last eight years, we have done a big reform of GST, reduced the tax burden across the country, simplified the tax regime, and after eight years, the need of the hour is to review it once. We started the review by setting up a high-power committee and also held discussions with the states,” PM Modi said from the Red Fort.
The proposal has been sent to the states and to the Group of Ministers (GoM) of the GST Council. A meeting of the GST Council is expected to be held in September or October to consider the proposal, sources added. (ANI)
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