GST Reduced: These items became cheaper in the 56th meeting of the GST Council, check the list

GST Reduced: After the 56th meeting of the GST Council, Finance Minister Nirmala Sitharaman informed about the decisions. The Finance Minister took several decisions that gave direct relief to the general public, farmers and laborers. At the same time, she also announced higher taxes on products like luxury cars, yachts and tobacco.

GST Reduced: The government has fulfilled its promise. The GST Council has announced reduction of GST on almost all the things used by the common man. GST has been made zero on all things including bread, paneer and chenna paneer. Prices of 33 essential medicines have been reduced. Life insurance will be completely exempted from GST. GST on small cars and motorcycles (350 cc or less) has been reduced from 28% to 18%, that is, on September 22, when you go to the shop to buy something, you will have to pay less money. Here we are telling you what will become cheaper and what will become expensive due to reduction in GST rate.

After the 56th meeting of the GST Council, Finance Minister Nirmala Sitharaman said that this is not just a reform in GST, but a step taken towards structural reforms and making people’s lives easier. GST rates have been reduced on everyday use items.

5% GST on hair oil, soap, bicycle

Sitharaman said that the items on which GST has been reduced to 5% are hair oil, toilet soap, soap bar, shampoo, toothbrush, toothpaste, bicycle, tableware, kitchenware and other household items. GST on milk, bread, chenna and paneer has been reduced from 5% to 0. GST on all Indian rotis will be 0 i.e. whether it is roti or paratha or whatever, GST will be 0 on all of them. Food items like namkeen, bujiya, sauce, pasta, instant noodles, chocolate, coffee, preserved meat, cornflakes, butter, ghee, all these 5 items are under the purview of GST. GST reduced from 28% to 18% includes air conditioning machines, TVs, dishwashing machines, small cars, motorcycles.

33 life saving medicines out of GST

The biggest relief has been given to the health sector. The council has completely removed GST on 33 life saving medicines. These include 3 important medicines used in the treatment of cancer, rare diseases and serious diseases, which were earlier taxed at 5%. Apart from this, tax on many other medicines and medicines has been reduced from 12% to 5%.

Relief to farmers and laborers

Agriculture and labor-intensive sectors got a big relief in the meeting. GST on tractors and agricultural machinery such as plowing, harvesting, threshing, fodder making and composting machines has been reduced from 12% to 5%. Tax on 12 biopesticides and natural menthol has also been reduced from 12% to 5%. Apart from this, labor-intensive industries like handicrafts, marble, granite blocks and intermediate leather goods will also get the benefit of concessional rate of 5%.

Big relief to the construction sector

An important decision has also been taken for the construction sector. GST on cement has been reduced from 28% to 18%. The government believes that this will reduce the construction cost and give impetus to the real estate sector.

40% tax on luxury cars and yachts

The Finance Minister made it clear that there will be no relaxation in tax on luxury category goods. Now 40% GST will be applicable on mid-size and large cars, motorcycles with engines of more than 350 cc, aircraft for personal use, helicopters and yachts and ships used for entertainment.

Sin goods and soft drinks become expensive

For the first time, the council has fixed a special tax rate for sin and super luxury goods. Pan masala, cigarettes, gutkha, bidi and other tobacco products will now be taxed at 40%. The same rate will also apply to all types of soft drinks and non-alcoholic beverages. These include drinks with sugar or sweetener, flavored and caffeinated beverages, carbonated fruit drinks and carbonated beverages with fruit juice.

Tax structure becomes simple

Nirmala Sitharaman said that now most things will be between the rates of 18% and 5%. 40% tax will be applicable only on sin goods and super luxury products. She says that these reforms will provide relief to the common man, farmers and laborers, while the government has maintained high tax on non-essential and harmful things.

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