New Delhi, Sep 3
The GST Council, in its ongoing meeting here, has veered around to bringing consumer goods such as shoes and clothes in the lower price range of up to Rs 2,500 under the lowest GST tax bracket of 5 per cent, according to sources.
With goods from the 12 and 28 per cent brackets being brought under the lower tax rates of 5 and 18 per cent, the total number of tax slabs has been reduced to two from four earlier as part of the simplified system. The prices of consumer goods will come down due to the lower taxes, leading to an increase in demand and spurring growth in the economy.
The reforms will also seek to reduce classification-related disputes, correct the inverted duty structures in specific sectors, ensure greater rate stability, and further enhance ease of doing business.
GST reforms would strengthen key economic sectors, stimulate economic activity, and enable sectoral expansion, PM Modi said.