RBI Grade BNABARD ESISEBI
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GST Rate Rationalisation by GoM
“RBI MPC Unpacked: Key Theory Meets Today’s Macro Trends”Tap to play · from the C4S channel
- The Group of Ministers (GoM) is expected to recommend a rejig on 150 goods and services, including textiles, to the GST Council.
- The GoM is also likely to suggest a new slab of 35% for tobacco and tobacco-related products, against the current rate of 28%.
- The GoM agreed on several GST rate changes to simplify the GST framework and enhance revenue collection.
- The report is expected to be placed before the 55th GST Council on December 21.
- The GoM has suggested lowering rates for textiles, bicycles, exercise books, and luxury items.
- The GST rate structure for textiles applies a 5% tax on items priced up to ₹1,000 and a 12% tax on those priced above ₹1,000.
- The GoM has also proposed raising GST rates on luxury items, including high-end wristwatches and shoes.