new gst rate
GST 2.0 reform is going to be implemented in India, which aims to make the tax system simple for the common man and easy for businessmen. The important changes made in the 56th GST Council meeting will have a profound impact on the tax rates of all everyday goods, services and major sectors. The government says that this reform will make business easier for entrepreneurs while reducing the burden on the pockets of the middle, lower class and poor sections.
Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement from any state. “We’ve reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess,” finance minister Nirmala Sitharaman announced. The panel approved simplifying the GST from the current four slabs – 5, 12, 18 and 28 per cent to a two-rate structure – 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.
Full list of items that have received a rate cut:
-33 Life-saving drugs and medicines, Cancer medicines, Medication for rare diseases,
-Individual life insurance, Health policies
-Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Notebooks, Erasers
-Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti
GST rates: Items under 5%
-Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream
-Butter, Ghee, Cheese & dairy spreads, Namkeens, Utensils
-Feeding bottles, napkins for babies and clinical diapers
-Sewing machines and parts
-Thermometer, Medical grade oxygen, All diagnostic kits and reagents, Glucometer and test strip
-Corrective spectacles
-Tractor tyres, parts, tractors
-Specified bio-pesticides, Micro-Nutrients
-Drip irrigation system and sprinklers
-Agricultural, horticultural or forestry machines for soil preparation
GST rates: Items under 18%
-Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm)
-Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm)
-3 Wheeled Vehicles
-Motorcycles (350 cc & below)
-Motor Vehicles for the transport of goods
-Air Conditioners
-Televisions (above 32″) including LED & LCD TVs
-Monitors & Projectors
-Dish Washing Machines
-Road tractors of engine capacity more than 1800 cc
GST rates: Items in 40%
-Pan masala, Cigarettes, Gutka, Chewing Tobacco, Bidis
-Aerated waters containing added sugar or flavour, Caffeinated beverages, Non-alcoholic beverages
-Smoking pipes
-Motorcycles exceeding 350 cc
-Aircraft for personal use
-Yachts
-Revolvers and pistols
-Betting, casinos, gambling, horse racing, lottery and online money gaming
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