New Delhi: The Goods and Services Tax (GST) Council, in its 56th meeting yesterday, cleared the next-generation reforms under the eight-year old indirect tax regime. This effectively paves the way for a broad two-slab structure of 5 per cent and 18 per cent with a demerit rate of 40 per cent rate only for super luxury, sin and demerit goods.

Its aim is to lower tax burden on common people with sweeping rate cuts and reduction in GST slabs, ease blocked working capital, and facilitate ease of doing business with automated refunds and registration process.

Welcoming the reforms, Mr. Kirit Bhansali, the Chairman of India’s Gem & Jewellery Export Promotion Council (GJEPC) said, “We appreciate the Government for taking such timely and bold step on GST reforms. The move will not only stimulate demand and ease the pressure on export supply chain but also empower the Indian consumers with greater purchasing power. Ultimately, when consumers benefit, it creates a positive ripple effect on the entire Gem & Jewellery industry.”

GST reforms will stimulate demand and provide a cushion to export supply chain under pressure. We are committed to passing on these benefits to the Indian consumers,” he added.