GST rejig: A boost for rising 'aspirational' middle class

Consumption Boost

- Pushpita Dey @ New Delhi

THERE are over 250 goods in the 12% GST tax slab and 35-odd under 28% slab. The government proposes to move more than 90% of these goods to lower tax slabs as it plans to remove the two rates.

The aim of this exercise is to bring respite to the growing aspirational middle class and boost consumption, finance ministry sources said. As a result, GST on goods like AC, TV, fridge, cars would be under tax slab of 18%, which were earlier under 28% slab. Almost 99% of the goods in the 12% slab would now be taxed at 5%.