New Delhi: The GST Council has approved rationalization of GST rates. Now there will be only two GST slabs, 5 percent and 18 percent. Tax rates of 12 percent and 28 percent have been abolished. The council has approved a new slab of 40 percent tax for sin and luxury items. All the decisions of the 56th GST Council will come into effect from September 22. After the 56th GST Council meeting ended on Wednesday night, Union Finance Minister Nirmala Sitharaman held a press conference in Delhi and said that GST on items used by the common man and the middle class has been completely reduced. She told on which items the GST rate has been reduced and on which items the tax has been increased.
She said that a special rate of 40% has been provided in the category of GST rates. Now GST rate on pan masala, cigarettes, gutkha and other tobacco products will be 40%. These items will become cheaper
Personal care revolution: Hair oil, shampoo, toothpaste will now attract 5% GST instead of 18%
Kitchen essentials cheaper: 5% GST on butter, ghee, namkeen, pasta
Relief on breakfast table: Cornflakes, coffee, chocolate now attract 5% GST
Bicycles, tableware, kitchenware included in 5% GST slab
Zero tax bonanza: Paneer, Indian bread, UHT milk now GST-free
12% to 5% GST on namkeen, bhujia, mixture
GST cut on sauces, instant noodles, preserved meat
35% GST cut on TVs, ACs, dishwashers
All TVs will now be charged at 18%
GST on air conditioners reduced from 28% to 18%
Vehicles with capacity less than 1200 cc petrol/1500 cc diesel now attract 18% GST
Two-wheelers Vehicle relief: 18% GST on motorcycles with capacity less than 350 cc
Public transport boost: 35% tax cut on buses, trucks, ambulances
Auto parts: Single rate of 18% on all parts now
Life saving relief: 33 essential drugs now tax-free
Vision care: GST on spectacles and goggles reduced from 28% to 5%
Cancer care support: GST on treatment drugs zero or 5%
Making dreams come cheaper: GST on cement reduced from 28% to 18%
Handicraft revival: 60% tax cut on traditional crafts, marble, granite
Farmer-friendly: GST on tractors, farm equipment reduced from 12% to 5%
Organic farming: 12 bio-pesticides now only 5% GST
Rural economy boost: Major tax relief to labour-intensive sectors
Insurance revolution: All individual health and life insurance policies now GST-free
Family protection: No tax on term life, ULIP, endowment policies
Which items will get expensive
Luxury automobiles (new 40% slab)
Expensive cars to now attract 40% GST
Motorcycles: Bikes above 350cc join 40% tax club
Impurities and tobacco (28% to 40%)
43% tax hike on cigarettes, tobacco products
40% GST on gutkha, tobacco products
40% GST on carbonated beverages and sweetened beverages
43% hike in prices of carbonated beverages
18% GST on cotton quilts priced above Rs 2,500
18% GST on shoes priced above Rs 2,500
40% GST on private planes, helicopters, yachts
40% GST on entry tickets for IPL matches
Betting, casinos, gambling, horse racing, lotteries and online A GST rate of 40% will apply to all specified actionable claims, including money gaming. Entry to sporting events such as the IPL will attract 40% GST, however, this 40% rate will not apply to entry to recognised sporting events.
Entry to other sporting events, including recognised sporting events, where the ticket price does not exceed Rs 500 will continue to be tax exempt, and if the ticket price exceeds Rs 500, it will continue to be taxed at the standard rate of 18%.
5% GST on man-made fibres and yarns
During the press conference, Sitharaman said, “The long-standing problem of inverted duty structure in the man-made textile sector is being resolved. The GST rate on man-made fibres has been reduced from 18% to 5% and on man-made yarn from 12% to 5%. We are also addressing the problem of inverted duty structure in the fertilizer sector by reducing the GST rate on sulphuric acid, nitric acid and ammonia from 18% to 5%,” she said.
Naidu welcomes GST reforms
Andhra Pradesh Chief Minister N Chandrababu Naidu said in a post on X, “We welcome GST reforms with revised slabs in daily necessities, education, healthcare and agriculture. This pro-poor, growth-oriented decision will benefit all sections of society, from farmers to businesses. I congratulate Prime Minister Narendra Modi Ji and Union Finance Minister Nirmala Sitharaman Ji for this transformative decision.” PM Modi on Independence Day As announced by Zee, these next-generation GST reforms mark strategic and citizen-centric advancements in our tax structure, ensuring a better quality of life for every Indian.
