The Indian government is planning to revise GST rates to reduce taxes on essential goods. A ministerial panel is proposing to reduce GST on products such as medicines and tractors to 5%. The change is aimed at supporting agriculture, health, and other sectors, while also maintaining revenue stability.

GST reduced on essential goods

A ministerial panel is proposing to reduce GST to 5% on medicines, tractors, and other essential items. This step is being taken when the government has to keep its revenue stable.

GST cut on tractors

The GST rate on tractors is currently 12% to 28%. If GST is reduced, farmers can avail more benefits. This will support the agriculture sector.

Plan to increase tax on high-end electric cars.

To compensate for the revenue loss due to the reduction in GST on tractors, it is being considered to increase the existing 5% GST on high-end electric vehicles and imported cars costing more than Rs 40 lakh.

Reduction in GST on insurance

The government is thinking of reducing the GST on health insurance from 18% to 12%. Along with this, 5% GST can be imposed on term insurance.

Suggestion of zero GST on term insurance

Some people are also suggesting to levy zero GST on term insurance. However this can create problems for insurance companies. Therefore, levying 5% GST is considered better.

Changes in GST slabs

The government is considering reducing the number of GST slabs from four to three. A panel headed by Bihar Deputy Chief Minister Samrat Chaudhary has expressed the possibility of bringing some items from 12% to 5%.

Impact on the market

If this proposal is implemented, it will bring changes in the market. People can get essential goods and services at cheaper rates. This step will also strengthen the Indian economy.

Taking care of the facilities of common people

This proposal of the government is keeping in mind the economic development and convenience of the people. If everything goes well, it will benefit farmers, consumers, and businesses. This is a positive step, which will help in improving the system of GST further.