GST council approves the 18% and 5% simple tax structure w.e.f. 22nd September

The 56th meeting of the GST Council was held in New Delhi under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council made the recommendations relating to changes in GST tax rates, provide relief to individuals, common man, aspirational middle class and measures for facilitation of trade in GST.

The council approved the rationalisation of the current 4-tiered tax rate structure into a Simple Tax - a 2 rate structure with a standard rate of 18% and a merit rate of 5%; a special de-merit rate of 40% for a select few goods and services.

GST Council approved reforms with a multi-sectoral and multi-thematic focus on improving the lives of all citizens and ensuring ease of doing business for all, including small traders and businessmen.

All the rate changes, except those for tobacco and tobacco-related products, will come into effect from September 22.

Powered by Capital Market - Live News