The dates of the GST Council meeting have been announced. This meeting is to be held in Jaisalmer on 21st December. Some big decisions can be taken in this meeting. Some important changes may occur. It is being speculated that the prices of cigarettes and tobacco may increase. However, there are some everyday items that can be affordable.
The meeting will be held on 21st December
The meeting will be presided over by Union Finance Minister Nirmala Sitharaman. In which a decision can be taken to relax GST on health and life insurance. Some important decisions in this meeting include increasing GST on cigarettes and tobacco. This is not the first time that GST on cigarettes and tobacco is being increased. Even before this, the government has imposed tax on cigarettes and tobacco.
How much can it be increased?
On rationalizing GST rates, the Group of Ministers has proposed to increase the tax on tobacco and cigarette related products from the current 28% to 35%. This decision may be part of an effort to increase revenue collection. To finalize the rate, a group of ministers under the chairmanship of Bihar Deputy Chief Minister Samrat Chaudhary held a meeting on Monday.
It was agreed to propose a special rate of 35% on tobacco. For this, the existing four-tier tax structure of 5%, 12%, 18% and 28% will remain the same. This will also include the new 35% rate.
GST may be reduced on this
- Packaged drinking water (20 liters and above): GST may be reduced from 18% to 5%
- GST on cycles priced below Rs 10,000 may be reduced from 12% to 5%.
- Notebook: GST should be reduced from 12% to 5%.
- Shoes priced above Rs 15,000 per pair: GST increased from 18% to 28%.
- Wrist watches above Rs 25,000: GST increased from 18% to 28%.
