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Govt May Slash GST on Essential Goods to 5%, Proposal Under Review Ahead of Key Council Meet

New Delhi: The central government is actively considering a major restructuring of the Goods and Services Tax (GST) system that could reduce the tax burden on essential household goods. As per reports, a proposal is on the table to either lower the 12% GST slab to 5% or eliminate the 12% slab altogether, shifting items into existing 5% or 18% categories.

The move, if implemented, could lead to lower prices on dozens of daily-use items, including toothpaste, kitchen appliances, footwear, garments, school stationery, pressure cookers, and more. Most of these products are commonly purchased by middle-class and lower-income households, making the potential tax relief especially significant for those groups.

The plan under discussion involves either reducing the 12% GST slab to 5%, which would directly lower costs for consumers, or scrapping the 12% slab entirely. In the latter scenario, goods currently taxed at 12% would be reallocated into either the lower 5% category or the higher 18%, depending on whether they are considered essential or discretionary.

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