The GST council will discuss the list of goods and services on which India plans to reduce taxes on September 3–4, with input from the states and under the direction of Federal Finance Minister Nirmala Sitharaman.
Two sources revealed additional details of Prime Minister Narendra Modi‘s significant tax reform, stating that India intends to reduce consumption tax by at least 10 percentage points on roughly 175 goods, ranging from shampoos and hybrid cars to consumer gadgets.
In order to increase sales for businesses like Hindustan Unilever and Godrej Industries, the plan would lower the goods and services tax (GST) on consumer products like toothpaste, shampoo, and talcum powder from 18% to 5%.
Prior to the October start of the Diwali shopping season, when Samsung, LG goods, and Sony dominate sales, prices for consumer goods such as TVs and air conditioning may fall from 28% to 18%.
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For years, Toyota Motor and Maruti Suzuki have pushed for a tax decrease on a technology they claim is cleaner than gasoline automobiles, and the proposed reduction in small gasoline hybrid cars from 28% to 18% is a victory for them.
Modi promised to lower taxes on everyday things without providing specifics during his Independence Day address on August 15, which set off the massive reforms to the intricate GST system.
India’s finance ministry did not immediately reply to an email for comments on this item.