Daijiworld Media Network – New Delhi

New Delhi, Sep 7: The GST Council, chaired by Finance Minister Nirmala Sitharaman, has announced sweeping reforms aimed at easing the tax burden on consumers. The Council has simplified the goods-and-services-tax structure by eliminating the four-tier system and reducing rates to 5% and 18%, effective September 22.

The 12% and 28% slabs have been removed, while 'sin goods' such as tobacco and cigarettes will continue to attract a steep 40% tax.

Consumer electronics and household items stand to benefit significantly. According to NDTV Profit, India's revised GST rates on discretionary goods such as televisions, refrigerators, washing machines, laptops, and phones are now among the lowest globally:

• United Kingdom: Standard VAT rate of 20%, substantially higher than India’s 5% GST.
• United States: No nationwide sales tax; state-level rates typically range from 2.9% to 10%.
• Australia: 10% GST on most household and discretionary items, double India’s reduced rates.
• Japan: Japan Consumption Tax at 10% standard rate or 8% reduced rate on most goods.
• UAE: VAT at 5% on most goods and services, similar to India’s new rates, though healthcare, education, and exports enjoy exemptions.

The Council’s move reflects a push to make consumer goods more affordable while maintaining higher taxation on luxury and harmful products.

This simplification is expected to benefit millions of households, particularly those purchasing essential electronics and appliances.