The GST Council has approved historical changes in India’s indirect tax system. After this, many items used in everyday will become cheap from September 22.
The new structure will now have two main tax slabs – 5% and 18%, while SIN Goods like Pan Masala, Gutkha and Cigarette will be taxed at 40%. For the common man, this means that daily use things will be cheap and more money will be saved in people’s hands, which will also promote the economy.
Eating and drinking and everyday things
Milk: UHT milk will now be tax-free (first 5%), while the tax on condensed milk, butter, ghee, cheese and cheese has reduced to 5% or in some cases.
Cereals and Snacks: The tax of malt, pasta, cornflakes, biscuits, chocolate and cocoa products will be reduced from 12–18% to 5%.
Meve: The tax on almonds, pistachios, cashews, hazelnuts and dates declined from 12% to 5%.
Sugar and sweets: Sweets like refined sugar, syrup and toffee, candy have also come into 5% slab.
Other packaged food: Oil, ghee, sausage, meat, fish and malt-based food products will also be taxed only 5%.
Namkeen, Bhujia, Mixter and Chabena will come down from 18% to 5%.
Packed mineral water and non -sugar areted water will also decrease from 18% to 5%.
Agriculture and fertilizer
The tax on fertilizer will be reduced from 12–18% to 5%.
Tax on seeds and other agricultural products has also been reduced from 12% to 5%.
health sector
The tax of life saving medicines, medical equipment and some health related products declined from 12–18% to 5% or zero.
Life and health insurance policies will no longer be taxed (first 12%).
Medical devices like thermometer and glucometer will now be in 5% slab.
Consumer goods
GST on cheap electrical devices declined from 28% to 18%.
The tax on shoes and slippers and clothes declined from 12% to 5%.
Expensive and prohibited goods
Products like Pan Masala, Gutkha, Cigarette, Zarda and Bidi will be applied as high tax and cess as before. Their valuation will now be from the Retail Cell Price (RSP) instead of Transaction Value.
The tax on sugar or flavor drinks and ared water has been increased from 28% to 40%.
SIN and luxury goods like cigarette, premium liquor and luxury cars will not get tax relief.
Imported bounded luxury cars will be exempted from tax only in special cases (eg President’s Secretariat).
