The GST Council has given major relief to the common people in its 56th meeting. This includes school-related items and several everyday essentials. Union Finance Minister Nirmala Sitharaman held a press conference and announced that the GST structure has been simplified to just two slabs. With this change, not only will educational items become cheaper, but the prices of food products, medicines, and several essential goods will also go down. Let us understand what has changed and how people will benefit.
New GST Rate List: Zero Tax on School Supplies
The GST Council has focused on reducing the burden of education. Many essential school items that were earlier taxed at 12% and 5% will now fall under the zero-tax category. These include maps, globes, pencils, sharpeners, erasers, notebooks, lab books, and exercise books. This will reduce the financial pressure on parents and students, especially for families worried about the rising cost of education.
GST Slab Changes: What Will Become Cheaper
According to media reports, the GST Council plans to reduce tax on nearly 175 items. This includes food products like fruits, vegetables, dhaba meals, khakhra, pizza bread, chapatis, and rotis. Prices of electronic appliances such as air conditioners, televisions, refrigerators, and washing machines will also come down.
Farm equipment and bicycles will become more affordable for farmers and the general public. Medicines and insurance services have also been brought under lower tax brackets. However, luxury items like tobacco products and cars costing above Rs 50 lakh will attract a 40% GST slab.
Also Read-: New GST Rate List: What’s Cheaper and What’s Costlier
GST Council Meeting: Finance Minister’s Statement
Finance Minister Nirmala Sitharaman said that Prime Minister Narendra Modi had promised reforms in GST, and this is a step in that direction. She thanked all state finance ministers for supporting the decision.
She highlighted that having only two GST slabs will make the tax system simpler and easier to understand. A review of compensation cess is also under consideration. The minister explained that these changes have been made keeping in mind the needs of the common man and the middle class. Most essential items have seen a significant tax reduction, with a special focus on supporting farmers, labourers, healthcare, and key sectors of the economy.
How People Will Benefit
- Cheaper education: Zero tax on school supplies will reduce the cost of studying.
- Lower household expenses: Food, medicines, and daily essentials will become more affordable.
- Relief for farmers: Reduced GST on agricultural equipment will cut farming costs.
- Simpler tax system: With only two slabs, understanding and paying GST will be easier.
Final Takeaway
The GST Council’s decision brings significant relief to parents, students, farmers, and the general public. Cheaper school supplies will ease the burden of education costs, while lower taxes on food, medicines, electronics, and everyday essentials will reduce pressure on household budgets.
For more updates and the latest notifications, you can visit the official GST Council website: www.gstcouncil.gov.in.