News article

GST Council Eyes Simpler Tax Structure (India)

VAT/GST News – India

There is near consensus on removing the 12% GST rate slab, but a final decision will have to be taken by the Council during the 56th GST Council meeting expected in late August.

Most items of common use will be moved to the 5% slab (e.g. butter, ghee, processed foods, umbrellas) while more expensive and branded items (e.g. mobile phones) could be moved to the 18% rate.

In addition the GST council might also introduce a reduced rate of 5% for life insurance premiums, green hydrogen, copper sulphate, crude ethanol, flavoured milk, mango pulp and handicraft items.