GST Council Meeting Update
In the GST Council meeting held on September 3, a major decision was announced. Finance Minister Nirmala Sitharaman declared that only two GST slabs—5% and 18%—will now remain. The 12% and 28% slabs have been abolished, and items under them will be shifted to the two approved slabs. However, a special 40% GST slab has been introduced for luxury and harmful products. These new rates will be effective from September 22.

Essentials to Get Cheaper

• Personal Care Products: Hair oil, shampoo, toothpaste, soap, toothbrush, shaving cream – reduced from 18% to 5%
• Dairy Products: Butter, ghee, cheese, and other dairy items – 12% to 5%
• Snacks: Pre-packaged namkeen and chivda – 12% to 5%
• Utensils – 12% to 5%
• Baby Products: Feeding bottles, baby napkins, diapers – 12% to 5%
• Sewing Machines and Parts – 12% to 5%

Healthcare Relief

• Health and life insurance – 18% to 0%
• Thermometers – 18% to 5%
• Medical-grade oxygen – 12% to 5%
• Glucometers and test strips – 12% to 5%
• Eyeglasses – 12% to 5%

Stationery to be Tax-Free

• Maps, charts, globes – 12% to 0%
• Pencils, sharpeners, crayons, pastel colors – 12% to 0%
• Textbooks and notebooks – 12% to 0%
• Erasers – 5% to 0%

Relief for Farmers

• Tractors – 12% to 5%
• Tractor tyres and parts – 18% to 5%
• Pesticides and micronutrients – 12% to 5%
• Agricultural machinery for tilling, harvesting, and threshing – 12% to 5%

Vehicles to Become Cheaper

• Petrol, LPG, and CNG cars (up to 1200 CC and 4000 mm) – 28% to 18%
• Diesel cars (up to 1500 CC and 4000 mm) – 28% to 18%
• Three-wheelers – 28% to 18%
• Bikes up to 350 CC – 28% to 18%
• Goods transport vehicles – 28% to 18%

Electronics with Reduced Tax

• Air conditioners – 28% to 18%
• TVs larger than 32 inches – 28% to 18%
• Monitors and projectors – 28% to 18%
• Dishwashing machines – 28% to 18%

What Will Get Costlier?

Luxury items, luxury cars and bikes, tobacco products, cigarettes, fast food, and cold drinks will now attract a special 40% GST slab.