New Delhi: The central government is weighing a significant revamp of the Goods and Services Tax (GST) system, which could bring down prices on a wide range of everyday items and services. As per government sources, the proposal aims to scrap the 12% and 28% slabs, replacing them with a simpler two-rate structure of 5% and 18%.
If approved, goods currently taxed at 12% would drop to the 5% bracket, while those under 28% — excluding select luxury and sin goods — would shift to 18%.
Items That Could See Price Drops
The move would reduce prices on several commonly used products, including:
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Dairy items like butter and ghee
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Processed foods such as pickles, murabba, chutney, jams, jellies, and fruit juice
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Almonds and other packaged dry fruits
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Packaged coconut water
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Everyday goods like umbrellas
Services in Line for a Cut
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Hotel accommodations priced up to Rs 7,500 per night
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Air travel in non-economy classes
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Certain construction works and multimodal transport services
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Some categories of professional services
Experts say the shift could give consumers more purchasing power and simplify the tax structure for businesses, though it will first require the GST Council’s approval in its upcoming meeting.
