After opening the day lower, share markets in India traded down throughout the day and are currently trading in red. Sectoral indices are trading on a mixed note with stocks in the consumer durables sector and stocks in the banking sector trading in green, while stocks in the healthcare sector and stocks in the FMCG sector are leading the losses.

The BSE Sensex is trading down by 18 points (down 0.1%), and the NSE Nifty is trading lower by 9 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading up by 0.3%, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 64.89 to the US$.

In news from the Goods and Services Tax (GST) space. The GST council began its two-day meeting today. According to various media reports, tax rates on 80% of top 28% slab are likely to be slashed at the GST Council’s meeting.

The GST council, which comprises of representatives of all states, has already rationalized tax rates for over 100 items. The council has last month approved an approach paper to be followed by the fitment committee while deciding on future rate revisions. The fitment committee has also recommended reducing tax rates from 18% cent to 12% on a number of goods.

In further relief to small and medium enterprises (SMEs), GST Council is likely to rationalize tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or attracted lower VAT rates in the previous indirect tax regime.

Under GST, various goods and services have been bracketed in 5%, 12%, 18% and 28%. GST has subsumed over a dozen taxes, including excise, service tax, and VAT.

GST’s Impact on Aam Aadmi’s Spending

As we have saying, GST is a much-needed economic reform. It should eventually expand India’s narrow tax base and increase government revenues.

That said, every coin has two sides. GST is no exception. It has had its fair share of chaos in the months immediately post its implementation from 1 July 2017. Many businesses reported depressed earnings due to the transition to GST.