The Goods and Services Tax (GST) Council announced today that only two rates will remain from September 22 – 5 per cent and 18 per cent. There is a special rate of 40 per cent which will apply only to pan masala, cigarette, aerated water with added sugar, carbonated beverages, etc.
We look at what has become cheaper:
narendramodi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort. Working on the same principle, the GST Council has approved significant reforms today. Milk, roti, paneer, ghee: 5 per cent Biscuits, sauces, pasta: 5 per cent Dry fruits, pizza bread: 5 per cent Oxygen, glucometers, kits: Nil Critical drugs, bandages: 5 per cent Soap, shampoo, toothpaste: 5 per cent Candles, toys, furniture: 5 per cent Solar, wind devices: 5 per cent Biogas equipment: 5 per cent Textiles, TV, cement rationalised to 5 per cent or 18 per cent, based on item classification. Small cars, bikes: 18 per cent However, there is a special tax slab of 40 per cent on luxury cars, big SUVs, cigarettes, tobacco, gutkha, and carbonated drinks with added sugar, etc. There is also exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for common people and increase insurance coverage in the country. GST has been removed from Ultra-High Temperature (UHT) milk, prepackaged and labelled chena or paneer, and all Indian breads such as chapati, roti, paratha, parotta, etc.