India Plans Biggest GST, Stock Markets Hit Record High | Vantage with Palki Sharma | N18G - video Dailymotion

First Post

Indian stock markets soared today after Prime Minister Narendra Modi announced sweeping reforms to the Goods and Services Tax. The proposal cuts four tax slabs down to just two, with everyday items and even cars likely to get cheaper. But the changes could also cost the government over ₹1.5 lakh crore in revenue. Here’s what the reforms mean for you.  ---  India | Goods and Services Tax | PM Narendra Modi | GST Reforms | Tax Cuts | Tax Revenue | Firstpost | World News | News Live | Vantage | Palki Sharma | News   #india #narendramodi #taxcuts #gst #gstreforms #taxslabs #firstpost #vantageonfirstpost #palkisharma #worldnews   Vantage is a ground-breaking news, opinions, and current affairs show from Firstpost. Catering to a global audience, Vantage covers the biggest news stories from a 360-degree perspective, giving viewers a chance to assess the impact of world events through a uniquely Indian lens.  The show is anchored by Palki Sharma, Managing Editor, Firstpost.  By breaking stereotypes, Vantage aims to challenge conventional wisdom and present an alternative view on global affairs, defying the norm and opening the door to new perspectives. The show goes beyond the headlines to uncover the hidden stories – making Vantage a destination for thought-provoking ideas.  Vantage airs Monday to Friday at 9 PM IST on Firstpost across all leading platforms.   Subscribe to Firstpost channel and press the bell icon to get notified when we go live. https://www.youtube.com/@Firstpost  Follow Firstpost on Instagram: https://www.instagram.com/firstpost/  Follow Firstpost on Facebook: https://www.facebook.com/firstpostin/  Follow Firstpost on Twitter: https://twitter.com/firstpost  Follow Firstpost on WhatsApp: https://www.whatsapp.com/channel/0029Va6zOIrEQIamseyg762V  # news #breaking #24x7

Transcript

00:00This buzz on the Lal Street, Indian stocks touched new highs today with both the Sensex

00:08and the Nifty witnessing solid gains.

00:10So, what is driving this surge?

00:13An announcement from the Indian Prime Minister.

00:15Listen to this.

00:16This is a great deal.

00:34India is set to reform the GST, that's the goods and services tax.

01:00The plan is to slash tax rates in a big way.

01:02The GST is an indirect tax consumers pay it when they buy goods or use services.

01:08It's built into the prices that you pay at the store and it affects nearly everyone.

01:14Unlike income tax, which is paid on earnings, GST is paid on spending.

01:18It is included in most purchases from mobile recharge to haircuts, from clothes to cars.

01:24Whenever you buy something, you pay GST.

01:28Now this tax is set to come down and that matters.

01:32To understand why this move is significant, let's look at how the system works today.

01:36Right now the GST has four slabs.

01:385%, 12%, 18% and 28%.

01:42Reports say the government wants to cut this to just two slabs.

01:46It wants to remove the 12 and 28% brackets.

01:50This would leave just two slabs, 5% and 18%.

01:54So it's going to be a simpler structure and a big shift in India's tax system.

02:00This move could have a major impact on prices and I'll tell you how.

02:04Most items currently taxed at 12% will be shifted to the 5% slab and that's going to be a big drop.

02:12And this list from 12 to 5% includes everyday items like processed foods, dairy products like butter and cheese, mobile phones and computers.

02:22These are things people use every day.

02:25Now they will be taxed less.

02:27Then we have the 28% slab.

02:30Today that rate is reserved for luxury goods like your high end cars, air conditioners, large television sets.

02:36They're all charged 28% GST.

02:41Now under the new plan, 90% of these products will be moved to a lower slab.

02:46They will be taxed at 18%.

02:48So that's a direct saving of 10%.

02:51Naturally, these lower taxes should mean savings for consumers.

02:55And that is why the stock market jumped today.

02:58Shares of car companies rallied.

03:00If GST is cut, they stand to gain and gain in a big way.

03:04Small cars could get cheaper.

03:06They would be taxed at 18% instead of 28%.

03:10Fewer taxes mean more affordable cars and more sales.

03:14Insurance stocks also rose because they could benefit from lower GST too.

03:19Reports say insurance premiums could fall to 5% or even zero.

03:24This would apply to health and life insurance.

03:26Right now they're taxed at 18%.

03:29So for consumers that's going to be a big saving.

03:32At the same time, remember this is still a proposal.

03:35It has not been approved yet.

03:36The final decision lies with the GST council.

03:39This council is headed by the finance minister of India, Nirmala Sitaramal.

03:42It also includes finance ministers from all states.

03:45Because states share GST revenue with the center.

03:48They have a direct say in tax decisions.

03:50So this proposal will need their approval too.

03:53Every state will have to vote and think it through carefully.

03:58Because a tax cut comes at a cost.

04:02The government could lose up to 1.5 lakh crore in revenue.

04:06That's more than 17 billion dollars.

04:08This loss would be split between the center and the states.

04:12The GST council meets in October.

04:15That's when this proposal should come up for discussion.

04:17And while the tax cuts are being discussed,

04:19the government also plans to raise taxes on certain sin goods.

04:23Like tobacco.

04:25Tobacco products could face a 40% tax.

04:29Reports say the government will engage with the states to build consensus.

04:33This reform holds a lot of promise.

04:35It could give a big push to consumption and demand if executed right.

04:40As always, the devil is in the detail.

04:43We'll have to wait and see how this one plays out.

05:03The first post now available in nine languages on YouTube.

05:27English.

05:29French.

05:30German.

05:31Hindi.

05:32Indonesian.

05:33Italian.

05:34Japanese.

05:35Portuguese.

05:36Spanish.

05:37Go to Settings.

05:38Click on Audio Track and select a language of your choice.

05:53Be the first to know what's happening around you in your first language.

05:57First Post.

06:21You

India Plans Biggest GST, Stock Markets Hit Record High | Vantage with Palki Sharma | N18G

Category

Transcript

Be the first to comment

Recommended