Tue Dec 03 07:30:13 UTC 2024: ## GST Council to Decide Fate of Revised Tax Rates on 148 Items

**New Delhi, December 10, 2023** – The Goods and Services Tax (GST) Council is set to decide on a major overhaul of GST rates on December 21st. A Group of Ministers (GoM) has submitted a report recommending changes to tax rates on 148 items, impacting prices of various goods. These changes are expected to be revenue-positive for the government.

The proposed changes include both rate hikes and reductions. Luxury items such as expensive wristwatches (over ₹25,000) and shoes (over ₹15,000) are likely to see their GST rate increased from 18% to 28%. Conversely, several everyday items will potentially become cheaper. The GoM has suggested reducing the GST on bicycles (under ₹10,000) from 12% to 5%, and similarly lowering the rate on exercise books and packaged drinking water (over 20 liters) to 5% from 12% and 18% respectively.

A significant restructuring of GST rates on textiles is also proposed. The GoM recommends a 5% rate for garments costing up to ₹1,500, an 18% rate for those priced between ₹1,500 and ₹10,000, and a 28% rate for garments costing more than ₹10,000. This contrasts with the current system of 5% for items under ₹1,000 and 12% for those above.

While the GoM’s recommendations are expected to be discussed at the GST Council meeting, the final decision on these rate revisions rests with the Council. The impact of these changes will be significant, affecting consumers and businesses alike.

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