According to the TOI report, high agenda is a re -evaluation of tax rates on customer goods and is currently proposed to trim the burden on products such as the most slabed air conditioners.
Compensation strategy
Another serious issue is that the compensation is leaving the Center to the Central States to offset the revenue loss related to Cess-GST.
When the arrangement ends in March, the TOI reported that the council was expected to draft revenue flow schemes, possibly by placing additional cessation on products like tobacco and other “sinners”.
If the cesses disappear without alternatives, the states are scared of the lack of potential revenue. These fears have made them unhappy to approve any tax deductions, though such deductions are considered beneficial to consumers.
Help for an insurance policy
Of these proposals, this is a trick to remove GST on pure term insurance policy, the current 18% rate has changed to zero tax brackets, the newspaper states. The life insurance industry has argued to reduce the tax by 12%, but the center is planning to move forward to support middle -class buyers. Although no final call has been made yet, health insurance can also be a little comfortable.
12% slab under scrutiny
According to the report, the most important change on the table is to completely scrap 12% GST slabs.
This can reduce taxes on many items, but officials are considering whether the goods used mainly by business may need to go to high rates to protect revenue.
Officers familiar with the discussion told the TII that no final decision was taken.
They suggested that any repair should balance the goal of logic with financial discretion.
Balanced revenue and use
Increasing use means that the center is open to accept some revenue loss.
According to the TOI, the officials of the officials argue that a completely arithmetic approach to obtaining long -term profit in the high sales continent of the constriction of the tax deduction fails.
However, in this point of view, states may need wide discussion and consensus, some of which are still skeptical about the consequences of revenue.
Need a steady box
Discussions around the GST simplification have been going on for more than a year, but a success has remained missing.
A group of ministers has so far recommended extended adjustments instead of a wide reset, argument and insured tweezers.
Sources told TOI that it is now intended to keep a more estimated tax structure that reduces the need for repeated repetitions and gives clarity to both the business and the customer.
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