Navratri in the country starts with double joy. With the onset of this festive season, changes in GST rates will make many things cheaper from today. The items on which GST rates are going to change, from everyday needs to vehicles and medicines, everything will have a direct impact on the common man. Earlier this month, the GST Council decided to reduce the Goods and Services Tax (GST) from four slabs to two slabs. Now tax rates will be 5% and 18%, while a special rate of 40% will be applicable to luxury items. Except for cigarettes, tobacco and other related items, the new tax rates will be implemented from today.
Soap, powder, coffee, diaper, biscuits, ghee and oil will become cheaper
Prominent FMCG companies have reduced the prices of their products to make the benefit of GST reduction to consumers. As a result, everyday things like soap, powder, coffee, diapers, biscuits, ghee and oil will become cheaper from today. The move is expected to promote consumption and sales during the upcoming festive season starting from Navratri. FMCG companies have brought the benefit of GST 2.0 to consumers without any delay. From today, these companies have released a revised list of maximum retail prices of their products including soap, shampoo, baby diapers, toothpastes, razors and after-shave lotion.
Benefits of reduction in GST rate
Its purpose is to make the benefit of reduction in Goods and Services Tax (GST) rate to consumers. Companies such as Proctor & Gamble, Emami and HUL have released new price lists informing their respective distributors and consumers through their websites. Proctor & Gambal has released the revised list of its products. It has reduced the prices of products of brands such as Vicks, Head and Shoulders, Pantin, Pampters (Diapers), Gillette, Old Spice and Oral-B. P&G India has also reduced the prices of infant care products. GST on diapers will be reduced from 12% to 5% and Baby wipes from 18% to 5%. The new rates will be effective from today.
The company is also reducing the prices of Gillette and Old Spice. Prices of Emami Boroplus antiseptic cream, Navratna Ayurvedic Oil and Zandu Balm are also being reduced. HUL has also announced a reduction in prices of its consumer products including effective, dev -shampoo, horlicks, peasant jam, brow coffee, lux and lifeboy soap after GST reforms.
Medical expenses will reduce
Glucometer, diagnostic kits and most drugs will now have only 5% GST. Previously, they were in a slab of 12% or 18%. The government has also issued instructions to reduce MRPs to medical stores or sell medicines at low rates.
Home construction cost will reduce
Changes in GST slab will also provide relief to the builders. The government has reduced GST from 28 percent to 18 percent on cement, which will reduce the cost of house construction slightly. This will benefit both builders and home buyers.
Reduction in electronics prices
The prices of goods like TV, AC, refrigerator and washing machines will also be lower. Earlier, 28 percent GST was used on them, but now they have been kept in a slab of 18 percent. Companies have announced prices cuts, which will make these products access to more people.
Major benefits on vehicles
Small vehicles will now have 18 percent GST, and big vehicles will have 28 percent GST. Previously, vehicles such as SUVs and MPVs levied 28 percent tax and 22 percent cess. Now the total tax has been reduced to about 40 percent, which may reduce the prices of large vehicles slightly.
Relief in beauty and fitness services
GST has been reduced from 18 percent to 5 percent on services like salons, yoga centers, fitness clubs and health spas, although input tax credit will no longer be available.
Which thing will be taxed the most?
The government has imposed 40 percent GST slab on some goods, which has led to a jump in their prices. These include …
Cigarettes, gutkha, paan masala and online gambling services.
Big vehicle (more than 1200 cc, more than 4 meters long)
Bikes over 350 cc
Soft beverages like soft drinks and flavored water