Here's 'achhey din' GST rates slashed :::: 90% goods may get cheaper ... GoM approves scrapping of 12%, 28% GST slabs ::::: "Congress has 'talent' and that's making Rahul Gandhi nervous !!" - says Modi

In a key meeting held on Thursday, the panel of state ministers accepted the Centre's plan to reduce the four-rate system to two main slabs of 5% and 18%.  

The move marks the beginning of what is being called GST 2.0, aimed at making the tax system simpler, easier to follow, and less of a burden on households and businesses.  At present, GST is charged at four different rates: 5%, 12%, 18%, and 28%. Under the new structure, the 12% and 28% slabs will be scrapped. Goods and services will now mostly fall under 5% or 18%.

A higher 40% levy will continue on a limited list of “sin goods” such as tobacco and certain luxury items. The panel also recommended that luxury cars be brought under the 40% tax bracket.

According to the plan, 99% of items that were earlier taxed at 12% will now move to the lower 5% slab. Similarly, nearly 90% of items under the 28% slab will shift down to 18%.  

The GoM was chaired by Bihar Deputy Chief Minister Samrat Choudhary. Other members included Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K N Balagopal.

The ministers reached a broad agreement after reviewing detailed proposals from the Finance Ministry.

The Centre has said that the new structure will bring relief to households, farmers, and the middle class by lowering the GST rate on everyday items. 

Medicines, processed food, clothing, footwear, and several household products are expected to move to the 5% slab.

Large household appliances, televisions, and other durable goods will fall under the 18% rate instead of the earlier 28%, which could reduce prices for middle-class families.

Finance Minister Nirmala Sitharaman told the GoM earlier, “The rate rationalisation will provide greater relief to the common man, farmers, the middle class and MSMEs, while ensuring a simplified, transparent and growth-oriented tax regime.”

GST EXEMPTION FOR INSURANCE UNDER REVIEW

The GoM also discussed the Centre’s plan to exempt health and life insurance for individuals from GST. If approved, this would mean policyholders would no longer need to pay GST on their premiums.  

Prime Minister Narendra Modi told NDA leaders during a tea meeting that several young leaders in the opposition, particularly in the Congress, are very talented but do not get an opportunity to speak because of "family insecurity". 

According to sources, PM Modi further said that the presence of such youth leaders may be making Rahul Gandhi feel insecure and nervous.

Addressing only the ruling alliance MPs. the Prime Minister described the recently concluded Parliament session as a good one because important bills were passed.

He specifically praised the passage of the Online Games Bill, calling it legislation with far-reaching impact that deserved wider discussion. He singled out the Online Gaming Bill, calling it a reform with "far-reaching impact" that will directly affect the public.  

Notably, the All India Gaming Federation (AIGF) has written to Union Home Minister Amit Shah, seeking urgent intervention on the proposed Online Gaming Bill, warning that a blanket prohibition could inflict severe damage on the sector.