New Delhi, September 04: Many major changes in the Goods and Services Tax (GST) slab after the 56th meeting of the GST Council held on Thursday, several items used in day-to-day life will become cheaper. This includes everything from dairy products to medicines.
In this meeting, the existing GST slabs of 28% and 12% have been abolished and new slabs have been created. These new slabs are 5% and 18%. The new GST slabs will come into effect from September 22, the first day of Navratri.
The GST Council, headed by the Finance Minister Nirmala Sitharaman, has included many items used in everyday life in the 5% slab by removing them from the 18% and 12% GST slabs in the new GST slab. It includes oil, shampoo, toothpaste, toilet soap, toothbrush, shaving cream, dairy products like butter, ghee and cheese. Along with this, packed snacks, utensils, children’s napkins and diapers, sewing machine, glasses, children’s stationery items, life insurance, thermometer, small medical items and tractors have also been included.
Apart from this, GST has been reduced on many agriculture related items like hand pumps, drip irrigation equipment, nozzles for sprinklers, agricultural and gardening machinery for preparing soil, harvesting and threshing machinery etc.
The council has now abolished 28 percent GST on small cars and bikes and has now placed them in the 18 percent slab. It includes petrol, petrol hybrid, LPG and CNG cars up to 1200 cc, diesel and diesel hybrid cars up to 1500 cc, 3 wheelers, bikes up to 325 cc.
The GST Council has also placed some electronic items in the GST slab of 28 percent to 18 percent. This includes air conditioners i.e. AC, TVs larger than 32 inches, monitors and projectors and dishwashing machines.
The GST Council has approved placing cold drinks and added sugar items, vehicles larger than 1200 cc and 4000 cc and bikes larger than 350 cc and racing cars in the 40% slab from the 28% slab of GST. This will make these items expensive. Apart from this, things like non-alcoholic beverages, tobacco and cigarettes, entry in sports events, luxury cars, revolvers and pistols will become expensive.