Income tax exemption: Now the middle class will get another relief, tax will be removed from these essential items

This move will put a burden of Rs 40,000 crore to Rs 50,000 crore on the government. Despite this, the Center is ready to bear the initial impact. However, it is expected that consumption will increase as things become cheaper and when consumption increases, GST collection will also increase.

GST Slab: After the income tax exemption, now the common man can get another big relief. There is good news for the middle class and low income class on the inflation front. It is reported that the government is preparing to give relief in the form of reduction in Goods and Services Tax (GST). According to a report, the central government is planning to either completely abolish the 12 percent GST slab or change it and include it in the 5 percent slab.

Prices of these essential items will be cheaper

An NDTV report quoted sources as saying that after the income tax exemption in the budget, the Center is now preparing to give relief in GST tax. According to sources, the GST slab can be restructured. These will include items used more by the middle class and economically weaker sections. Such as toothpaste and tooth powder, umbrellas, sewing machines, pressure cookers and kitchen utensils, electric irons, geysers, small capacity washing machines, bicycles, readymade garments priced above Rs 1,000, shoes priced between Rs 500 and Rs 1,000, stationery items, vaccines, ceramic tiles and agricultural equipment etc. This means that if this happens, all these items will become cheaper in the future. Apart from this, there is news that the government is also considering a simple and easy-to-compliance GST system.

The government will have a burden of Rs 50,000 crore!

The report also states that this move of the Center will put a burden of Rs 40,000 crore to Rs 50,000 crore on the government. Despite this, the Center is ready to bear the initial impact. However, it is expected that consumption will increase due to things becoming cheaper and when consumption increases, GST collection will also increase. The Center believes that lower prices will increase sales, which will ultimately increase the tax base and increase GST collection in the long term. Let us tell you that recently Finance Minister Nirmala Sitharaman, in an interview, has indicated possible changes in GST rates, saying that the government is working towards a more rational structure and is considering giving relief to the middle class on essential commodities.

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