Simplified GST: Unleashing Economic Potential with Two-Slab Structure
The GST Council's revamp introduces a simplified two-slab tax structure, aiming to bolster the economy by prioritizing key sectors. With cuts across common use items, the reforms target increased domestic spending, support for labour-intensive industries, and enhanced industry confidence, marking a significant economic reform step.
- Country:
- India
The GST Council's recent move to streamline tax rates into a simplified two-slab structure is a strategic effort to ignite economic growth. Deloitte India's Mahesh Jaisingh notes that the reform goes beyond rate rationalisation, aiming to ease business operations with deeper structural changes.
Effective from September 22, the revamped GST will see significant tax cuts on everyday items, such as hair oil, TV sets, and insurance policies. This change aims to boost domestic consumption and cushion the impact of international tariffs, highlighting the government's focus on economic resilience.
Prioritizing sectors like FMCG, auto, cement, and insurance, the reform intends to drive demand and growth. By benefiting labour-intensive industries and agriculture, the GST 2.0 is seen as a vehicle to elevate consumer sentiment and strengthen industry confidence.
(With inputs from agencies.)
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