Government Lowers GST on Commonly Used Items
The Government has decreased the GST on various items spanning multiple categories. The new GST rates will take effect starting the 22nd of this month. During a media briefing in New Delhi, Finance Minister Nirmala Sitharaman announced that the GST on items used by the general public and middle-class families has been cut from 18 percent or 12 percent to 5 percent.
The Finance Minister mentioned that products like hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household goods will now only incur a 5 percent GST.
Additionally, she stated that the GST on ultra-high temperature milk, chena, and paneer has been reduced to zero from 5 percent, while all Indian breads will now be subject to a zero rate. Sitharaman also revealed that the GST on food items, including namkeen, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, and ghee, has been lowered from 12 percent or 18 percent to 5 percent.
The Minister further stated that the GST rates on items such as air-conditioning units, televisions over 32 inches, all types of TVs, dishwashing machines, small cars, and motorcycles have been brought down to 18 percent from 28 percent. She emphasized that labor-intensive industries are showing substantial support, and farmers, along with the agricultural sector, will also reap benefits from the decisions made today. The Minister noted that the GST on all agricultural machinery has been reduced from 12 percent to 5 percent.
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For the automotive sector:
GST reduced from 28percent to 18percent on small cars and motorcycles up to 350 cc.
GST on buses, trucks, and ambulances has been reduced from 28 percent to 18 percent.
Uniform 18 percent rate on all auto parts.
GST on three-wheelers reduced from 28percent to 18percent.
GST reduction on health-related items:
GST on 33 life-saving drugs and medicines reduced from 12percent to 0percent.
GST reduced from 5 percent to 0percent on 3 life-saving drugs used in the treatment of cancer, rare diseases, and other severe chronic diseases.
GST reduced from 12 percent to 5percent on several drugs and medicines.
To make insurance affordable for the common man and increase the insurance coverage in the country:
Exemption of GST on all individual life insurance policies, whether term life, ULIP, or endowment policies, and reinsurance.
GST exemption applies to all personal health insurance policies, including family floater plans as well as policies for senior citizens and reinsurance.
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The Finance Minister stated that Prime Minister Narendra Modi has set the stage for the future of tax reforms, ensuring that citizens receive benefits promptly. She mentioned that the administration has addressed issues related to the inverted duty structure, resolved matters concerning classification, and guaranteed enhanced stability and predictability within the GST framework.
The 56th Meeting of the GST Council took place in New Delhi, chaired by the Finance Minister. The Council discussed India's forthcoming GST reforms, focusing on the rationalization of tax rates and the simplification of compliance procedures.
Present at the meeting were the Union Minister of State for Finance Pankaj Chaudhary, along with the Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya, and Odisha.
Additionally, the Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana, the Governor of Manipur, as well as Finance Ministers from various States and Union Territories also took part in the meeting.