New Delhi. The existing four slabs of GST have been brought after proper analysis and evaluation of two slab proposals of five and 18 per cent at the place of Current four slabs. The central government has clarified that work has been going on for the last three years regarding the renovation of GST rates. Its purpose is to provide big relief to the common people. After two slabs are implemented, the prices of food and drink items used in daily life will be low and the expenses of common people will be reduced.

Not immediate decision
A group of ministers (GOMs) have already been formed regarding the proposal of two slabs, in the middle of which the chairman has been changing, but the GOM is working regularly towards rationalizing the GST rates, so the proposal to change the GST slab is not based on any immediate decision. Before the proposal, the revenue collection, the reduction in it, the change in tax rates, was assessed from the relief and economy perspective.

Treatment will be cheaper
-The government says that mainly the proposal for change has been brought keeping in mind the poor-middle class and micro, small and medium industries (MSMEs). Under this, the prices of goods used in daily life will be low. Not only this, it will also be cheaper to treat people, because many types of medical equipment will be cheaper than before, which are still in the slab of 28 per cent. He will go to slabs of 18 per cent and five per cent in the future. 99 per cent of the goods to the need of the common man will come under the tax of five per cent instead of 12. This will also increase the ability to shop in the country.

Small industries will get speed
The process of GST registration, returns and refunds will benefit the industry sector, which will give impetus to the economy. MSME plays an important role in the economic development of the country. The current GST process has many problems at many levels, which are proposed to simplify the rules process. This will improve the environment of business and enterprises in the country than before. Especially for small and medium industries, the entire process of GST will be easier.

Target to bring everyone under registration
Regarding the reduction in the annual revenue after the reduction in GST rates, the central government believes that there will be no major loss. Currently, most of the goods and services are included inside the GST. Two important things will be noted in future, which will also promote GST collection. Number one, every businessman will be brought under the purview of GST registration. Because, now GST rates will be completely practical. In such a situation, they will not have any problem in taking GST registration. Second, when the process of GST returns and refund is easier and timed, it will encourage traders to file timely returns. This will help prevent GST theft.

There is a proposal for major changes
The central government has proposed two tax rates (slabs) instead of current 5, 12, 18 and 24 percent rates in GOMs associated with GST Council. Especially the rate will be only for selected items, which will include five to seven items like paan-spices, tobacco, cigarettes etc. It is especially proposed to apply 40 percent.