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GoM on GST recommends removal of 12% and 28% bracket under regime
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Saturday, 23 August, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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After the announcement made by Prime Minister Narendra Modi on the Independence Day, the Group of Ministers on GST has recommended removal of the 12% and 28% tax bracket under the GST taxation regime.
If accepted by the GST Council, this would make the tax regime with only two effective tax slabs of 5% and 18%.
As per reports, the GoM headed by Finance Minister of Bihar Samraat Chaudhary confirmed that most of the states have agreed to the recommendations barring few and the recommendations have been referred to the GST Council.
Although the assessment of the revenue loss was not clear as yet, the overall sentiment in the GoM remained in favour of a rationalisation of the tax structure. And the proposal to remove the 12% and 28% tax slab is seen as part of the resolution promised when the GST was implemented.
It is learnt that under the new structure of GST merit goods and services will attract 5% GST while standard items would be levied 18% rate, and for sin goods a higher slab of 40% is recommended.
However, the detailed discussion on product and services will occur under the GST Council meet slated to take place in September, but experts expect that products attracting 12% tax will come under the 5% bracket while the 28% products would come under 18% tax slab.
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