Shoes, toothpaste to turn cheaper as Centre plans GST revision in boost for middle class: Report

The government is considering two proposals- either to remove the 12 percent slab or bring some of the goods to the lower 5 percent bracket, the report said.

Middle and lower-income families are set to receive a major relief with the reduction in goods and services tax for daily essential items such as toothpaste and pressure cookers as government seeks to address growing cost concerns, a report by NDTV said on July 2.

The development could be second tax boost this year after the Centre hiked the tax exemption limit to Rs 12 lakh per annum during its Budget 2025 announcements.

The government is considering two proposals- either to remove the 12 percent slab or bring some of the goods to the lower 5 percent bracket, the report said.

The Centre’s move would target items widely used by the middle and lower-income groups tooth powder, umbrellas, kitchen utensils, electric irons, geysers, certain washing machines, bicycles, readymade garments, footwears, agricultural equipment, vaccines among others, the news channel reported.

Moneycontrol could not independently verify the report.

Moreover, this move could have a financial impact of up to Rs 50,000 crore on the government, which it is prepared to absorb, NDTV said.

During a recent interview, Union finance minister Nirmala Sitharaman had signaled that the GST rates on certain items could come down.

However, the government cannot take any decisions on GST unilaterally. A consensus needs to be built in the GST Council, which is the empowered body to take calls on slab revisions.

The GST Council is expected to pick up the issue at its 56th meeting, likely to be held at the end of this month.