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.