The central government and the Ministry of Finance have decided to restructure India's indirect tax due to various problems in the goods and services tax.


The National Public Finance and Policy Organization (NIPFP), the think tank body of the Federal Ministry of Finance, has put forward the GST tax reform model.

NIPFP system

According to the plan submitted by the NIPFP organization, the model plan is to divide the remaining 4% tax boards into 8%, 15% and 30% tax boards, excluding the zero per cent tax measurement account. 


The federal government has stated that it will not affect any tax revenue measure by dividing it into 8%, 15% and 30% tax boards.


Chief minister of Karnataka

 At the last meeting of the GST Council, a group of ministers headed by karnataka Chief minister Basavaraj S. Bomma was given the task of reforming the GST tax board. 


If the decision of this committee is approved at the GST Council meeting, 4 tax boards will be restructured and reduced to 3 by next December.

Line board

The restructuring is currently on track to raise the next 5 per cent tax from 0% to 8 per cent on a plan submitted by the NIPFP organization. Similarly, 12% and 18% are to be added to the board by adding 15 per cent.


Middle-class people

As a result, ordinary people will have to pay higher taxes to buy most of what they currently buy. Further, if the tax rate is reduced from 18 per cent to 15 per cent, tax revenue will be reduced. To rectify this the 28 per cent tax is being raised to 30 per cent.

40 per cent products

About 40 per cent of the existing taxable items are subject to 18 per cent tax. In this case, the change in this section will have a major impact on the tax revenue of the central government, and to overcome this the other section will have to raise the tax measure.


7 line board

There are 3 more tax measurements beyond the 5%, 12%, 18% and 28% of the GST tax rate. 


There is a 0% GST on goods under the basic requirement category, a special tax of 0.25% on diamonds and a 3% GST on gems and jewellery. The NIPFP explained that this was a high-value low-volume commodity and that no changes had been made.

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