Big change in GST: 12% and 28% GST slabs will be abolished
2025-08-21 17:18:33
12% and 28% GST slabs will be abolished, GOM accepted the proposal of the Center.
The government has taken a big step towards simplifying the tax system. Meanwhile, a proposal has been presented to abolish the GST slabs of 12% and 28%. This means that now both these slabs will be abolished and only 5% and 18% slabs will remain.
The government is preparing to further simplify the GST (Goods and Services Tax) system. Recently, a GoM meeting was held, in which consent was given to make the GST slab proposed by the Center reasonable. In this meeting, the finance ministers of the states have supported reducing the existing four slabs to only two slabs. This means that now the slabs of 12% and 28% will be abolished and only 5% and 18% slabs will remain.
Will there be only two GST slabs now?
This six-member group of ministers, headed by Bihar Deputy Chief Minister Samrat Chaudhary, has decided that the GST rates will be divided into only two slabs. In this, a rate of 5% will be applicable on good and essential goods, while most standard goods and services will be taxed at 18%. Apart from this, luxury items will remain in the slab of 40%.
After this decision, about 99% of the items which were earlier at the rate of 12% will now come in the slab of 5%. At the same time, about 90% of the items which were earlier in the slab of 28% will be kept at the rate of 18%. This will make the tax system more simple and clear, which will benefit the general public as well as traders.
The GoM has also suggested that luxury cars should be taxed at the rate of 40%. Along with this, some harmful items will also be kept in this slab. The Finance Ministers of Uttar Pradesh, Rajasthan, West Bengal, Karnataka and Kerala in the GoM have also supported this proposal. He said that this will bring transparency in the tax system and the number of tax payers will increase.
Statement of Finance Minister Nirmala Sitharaman
Finance Minister Nirmala Sitharaman said in this meeting that the general public will benefit by making tax rates reasonable. She said that this new system will make the tax system simple and transparent. She also said that this will reduce the tax rate on many items, which will reduce the prices of goods and provide relief to consumers.
