Major Relief for Middle Class? 12% GST on Daily Essentials May Be Removed

In what could bring major relief to middle-class and lower-income households, the Central government is likely to eliminate the 12% GST slab on daily-use goods.

According to reports, the Centre is actively considering a restructuring of the Goods and Services Tax (GST) slabs to ease the financial burden on essential goods commonly used by average Indian households.

A decision on the matter could be taken as early as the upcoming 56th GST Council meeting, expected later this month. As per protocol, a 15-day notice is required for such a meeting, and preparations are already underway.

Currently, several basic household items fall under the 12% GST bracket, including butter, ghee, cheese, fruit juices, popcorn, mixed condiments, aluminium kitchen utensils, umbrellas, pencil sharpeners, and drinking water packaged in 20-litre bottles.

Deliberations are expected to focus on either shifting most of these goods to the 5% slab or eliminating the 12% category entirely.

This potential GST restructuring signals the government’s effort to address inflationary pressures, as the rising cost of living continues to strain household budgets.

If implemented, the overhaul could lead to a simplified three-tier GST structure, possibly with slabs like 8%, 16%, and 24% or 9%, 18%, and 27%.

The final decision will depend on reaching a consensus within the GST Council.