With the GST Council approving a two-tier rate structure of 5 and 18 per cent on Wednesday, all eyes are on what gets cheaper and costlier. The new rates will be implemented from September 22.
The marathon meeting of the GST Council lasted for 10.5 hours as the Centre and states went through key tax proposals. The Council cleared the Centre’s proposal change the existing four slabs of 5 per cent, 12 per cent, 18 per cent and 28 per cent into a dual slab of 5 per cent and 18 per cent, along with a special 40 per cent slab for sin and luxury goods. Check the list of items under 40 per cent GST HERE.
How will GST rates affect daily essentials?
Among daily essentials that will get move from 18 per cent GST to 5 per cent include hair oil, shampoo, toothpaste, toilet soap bar, tooth brushes and shaving cream.
Other items will see GST slabs reduced from 12 per cent to 5 per cent, including butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia and mixtures, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, ghee, utensils, feeding bottles, napkins for babies and clinical diapers, sewing machines and parts.
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Ultra-High Temperature (UHT) milk, prepackaged and labelled chena or paneer, all the Indian breads including chapati or roti, paratha and parotta will see GST dropping from 5 per cent to zero per cent.
Besides daily essentials, the council also slashed GST on beauty and physical well-being services from 18 per cent to 5 per cent. These include gyms, salons, barbers and yoga centres.
How GST rates benefit farmers?
Tractor tyres and parts will see GST slabs coming down from 18 per cent to 5 per cent.
Among items that will seen a dip in GST from 12 per cent to 5 per cent include tractors specified bio-pesticides, micro-nutrients, drip irrigation system and sprinklers, agricultural, horticultural and forestry machines for soil preparation, cultivation, harvesting and threshing.
Will healthcare become affordable?
The GST on individual health and life insurance will be zero per cent while thermometers will see rates dropping from 18 per cent to 5 per cent.
The council also reduced GST on 33 life-saving drugs and medicines from 12 per cent to NIL while 3 other life-saving drugs and medicines used for treatment of cancer, rare diseases and other severe chronic diseases will come down from from 5 per cent to NIL. GST on all other drugs and medicines will be slashed from 12 per cent to 5 per cent.
Medical grade oxygen, diagnostic kits and reagents, glucometer and test strips, and corrective spectacles will see GST rates coming down from 12 per cent to 5 per cent.
How GST rates will impact your vehicle purchase?
Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding - 1200 cc & 4000mm), Diesel & Diesel Hybrid Cars (not exceeding - 1500 cc & 4000mm), 3 Wheeled Vehicles, Motor Cycles (350 cc & below), Motor Vehicles for transport of goods will see GST slabs dipping from 28 per cent to 18 per cent.
Will new GST rates make education affordable?
The new GST rates have made education-related stationeries cheaper with zero per cent tax on maps, charts, globes, pencils, sharpeners, crayons, pastels, exercise books and note books from the previous 12 per cent.
Erasers will also attract zero GST compared to the previous 5 per cent.
Will electronic appliances turn cheaper?
Air conditioners, television (above 32") (including LED & LCD TVs), monitors, projectors and dish washing machines will now attract 18 per cent GST instead of the earlier 28 per cent.