New Delhi, 22 September (IANS). India’s new Goods and Service Tax system came into force from Monday. GST improvement has reduced tax on about 370 products including everyday essential things and life saving medicine.
Union Finance Minister Nirmala Sitharaman announced that the purpose of this change is to invest about Rs 2 lakh crore in the economy by increasing the disposable income of consumers.
Ultra-high temperature (UTH) more than 50 items including breads like milk, pre-packaged and label chheer/cheese, pizza bread, khakhara, chapati/roti have now come to zero tax category.
33 essential medicines and therapy for conditions like cancer and rare diseases are no longer under GST, while many other drugs have also been reduced from 12 percent to zero. Now only 5 percent GST will be applicable to medical devices such as diagnostic kits and glucometer.
Stationary items for school and office such as eraer, pencil, sharpener, crayon, graph book and maps have now been reduced to 5 percent.
Prices of many consumer goods such as butter, biscuits, condensed milk, salty, jam, ketchup, juice, dry fruits, ghee, ice cream and sausage have also been reduced.
Dry fruits and nuts like almonds, cashews, pistachios and dates will now be taxed at 5 percent instead of 12 percent.
The tax on cement for housing has been reduced from 28 percent to 18 percent. Lower rates will also be applied to services like haircut, salon treatment, yoga class, gym and health clubs.
Apart from this, zero GST category now also includes toothpastes like soap, shampoo, hair oil, face cream and shaving cream.
GST on kitchen and electronics like air conditioner, television, washing machine and dishwasher has been reduced from 28 percent to 18 percent.
The government has included cess in GST to make up for revenue shortage and imposed 40 percent tax on luxury and sin goods.
Sports utility and multipurpose vehicles, with a capacity of more than 1,200 cc (petrol) or 1,500 cc (diesel) and 4 meters, will now come under 40 percent tax.
-IANS
SKT/