India’s GST reform is finally cooking in the political kitchen, and the recipe is simple—scrap the 12% and 28% slabs and serve everything hot under just 5% and 18%. Sounds simple? Not quite. For the common man, especially those who juggle between Zara shirts and roadside carpets, here’s how this spicy tax twist might play out:
1. Clothes Above ₹2,500? Get Ready for a fashion Tax Hangover
That shirt or kurta you love buying for weddings or office parties could now cost 18% GST instead of 12%. Basically, the government wants you to look stylish and broke at the same time.
2. Carpets Roll Back in Price (But Who Cares?)
Carpets, which almost nobody buys except rich uncles with giant bungalows, may actually see GST drop from 12% to 5%. Finally, some relief—just not for you.
3. The Disappearing 12% Slab
Goodbye, mid-range tax heaven. The government is killing the 12% slab, forcing everything to choose between being "cheap and cheerful" (5%) or "luxury and looting" (18%).
4. Luxury = Punished, Essentials = Pampered
Textiles as a whole are expected to slip down to 5%, but the government is clear: if you have money to splurge, pay the price for it. In other words, your “branded jeans flex” comes with a tax flex.
5. The Great indian GST Gamble
The final call will be taken at the GST Council meet on Sept 3–4. Until then, people will speculate: Will clothes above ₹1,000 face 18% or will the ₹2,500 threshold apply? For now, we only know this—your shopping bill is about to surprise you more than your credit card OTP.
🔥 Bottom line: GST reform is being sold as “simplification,” but for the middle class, it feels like a direct upgrade from wardrobe tax to wallet trauma.
click and follow Indiaherald WhatsApp channel