Before the festive season, the Modi government has provided big relief to the common people. This year, celebrations like Durga Puja, Diwali, and Chhath will be more joyful as the GST rates have been reduced. Several essential items will now become cheaper due to changes in GST slabs.
The 56th GST Council meeting was held in Delhi on Wednesday, where several important proposals were approved. According to Finance Minister Nirmala Sitharaman, there will now be only two GST slabs — 5% and 18%. The 12% and 28% slabs have been removed. However, luxury and harmful goods will continue to attract a separate 40% slab. The new GST rates will be applicable across the country from 22nd September.
Here is a detailed list of what will become cheaper and what will remain expensive:
Items under 0% GST slab
- 33 life-saving medicines, cancer medicines, and drugs for rare diseases
- Personal life insurance and health insurance policies
- Maps, charts, globes, pencils, sharpeners, crayons, pastels, exercise books, notebooks, and erasers
- Milk, paneer, pizza bread, khakhra, chapati, and other Indian breads
Items under 5% GST slab
- Hair oil, shampoo, toothpaste, toilet soaps, toothbrushes, shaving creams
- Butter, ghee, paneer, dairy spreads, snacks, and kitchen utensils
- Baby feeding bottles, baby napkins, and clinical diapers
- Sewing machines and spare parts
- Thermometers, medical oxygen, diagnostic kits, glucometers, and test strips
- Spectacles and frames
- Tractor tyres, tractor parts, and tractors
- Approved bio-pesticides and micronutrients
- Drip irrigation systems and sprinklers
- Agricultural and horticultural machinery for soil preparation
Items under 18% GST slab
- Petrol, LPG, and CNG cars (up to 1200cc engine and 4000mm length)
- Diesel and diesel-hybrid cars (up to 1500cc engine and 4000mm length)
- Three-wheelers
- Motorcycles (up to 350cc)
- Commercial transport vehicles
- Air conditioners
- LED/LCD televisions above 32 inches
- Monitors and projectors
- Dishwashers
- Road tractors with engines above 1800cc
Also Read: GST New Rules: GST Rules Will Change from April 1, Know How It Will Impact Your Pocket
Items under 40% GST slab
- Pan masala, cigarettes, gutkha, chewing tobacco, and bidis
- Carbonated and caffeinated beverages, flavoured aerated water
- Smoking pipes
- Motorcycles above 350cc
- Private jets, yachts, and speedboats
- Revolvers and pistols
- Betting, casinos, gambling, horse racing, lotteries, and online money gaming
Key changes and highlights
- GST on motorcycles up to 350cc, ACs, dishwashers, and TVs has been reduced from 28% to 18%.
- GST on items like rubber, maps, pencils, sharpeners, and exercise books has been reduced from 5% to 0%.
- Vehicles above 1200cc engine and longer than 4000mm, motorcycles above 350cc, and private aircraft will now attract 40% GST.
- Cold drinks with added sugar will also have a 40% GST.
- Electric vehicles will continue to have 5% GST.
What becomes cheaper now
- Daily essentials like bread, roti, paratha, milk, paneer, butter, and ghee
- Personal care items like hair oil, shampoos, soaps, toothpaste, and toothbrushes
- Electronics like TVs, dishwashers, and ACs
- Health and life insurance premiums — completely tax-free
- Snacks like namkeen, bhujiya, sauces, pasta, instant noodles, chocolates, coffee, cornflakes, and preserved meat
What becomes expensive
- Luxury vehicles, high-end motorcycles, private jets, and yachts
- Pan masala, cigarettes, alcohol substitutes, and sugary soft drinks
- Gambling, betting, online money gaming, and lotteries