“Group of Ministers (GoM) have analysed several sectors and consumer demand and understand the compliance complications. Most of the aspirational goods like TV, refrigerator, will come under 5 per cent and 18 per cent. The restructuring has been proposed keeping in mind the interest of the aspirational middle class,” said the official source.According to the Finance Ministry, the restructuring aims to boost the core economic sectors like agriculture, textile, renewable energy, medical and health and insurance sectors. Lower GST rate on health and life insurance aims to bring relief to masses as this will enhance the public health sector and also help vulnerable sections come under insurance. Currently, a tax of 12 per cent and 18 per cent are levied on medicines and health products and on insurance respectively. Similarly, keeping in mind the interest of farmers and agricultural sectors, the rates have been brought down.Center believes that this reform will help boost consumption thereby having a positive impact on GDP.
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