GST Bachat Utsav Begins: From medicines, life insurance to food items, taxes on THESE goods, services to be reduced | Full List
Thirty-three life-saving medicines used in the treatment of cancer and other serious diseases have now been made completely tax-free. Earlier, they were subject to 12% GST.
New Delhi: In a bonanza to consumers, the GST Council, comprising Centre and states, decided to reduce tax rates on goods and services, from September 22 -- the first day of Navaratri. From today, the benefits of the GST rate cuts will start reaching the lower-middle class, farmers, and entrepreneurs. As per the reports, nearly 375 items ranging from kitchen essentials to electronics, medicines, equipment, and even vehicles will become cheaper. At the same time, for entrepreneurs, especially small businesses, processes such as GST registration and claiming refunds will become easier.
In his address to the nation on the eve of rollout of the new reduced tax rates, Prime Minister Narendra Modi said, "GST bachat utsav (savings festival)", coupled with the hike in income tax exemption to Rs 12 lakh given in the Budget, will be a "double bonanza" for people.
"Now, there will now be only 5 per cent and 18 per cent tax slabs in GST. Most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only have 5 per cent GST," PM Modi said.
From Monday, mass consumption items like ghee, paneer, butter, 'namkeen', ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, washing machines will become cheaper.
Dal and Roti will become cheaper
- Earlier, packaged food items such as flour, rice, pulses, biscuits, and snacks were taxed at 12% or 18% GST.
- Now, they have been moved to the 5% slab.
- This means a family of four can save an average of 1,800 per month and nearly 40,000 annually.
Savings on soaps to shampoos
- Everyday essentials like soap, oil, toothpaste, detergent, and shampoo were earlier taxed at 18%, but now they will fall under the 5% slab.
Clothes and shoes will fit into people's budgets
- Previously, readymade clothes and shoes priced above a certain limit attracted 12% to 18% GST. Now, the tax has been reduced to 5%.
Big savings on TVs, ACs, and refrigerators
- TVs, ACs, refrigerators, and other large electronic appliances carried a 28 percent GST. Under the new structure, they will be taxed at only 18 percent.
- As a result, the prices of TVs with screen sizes above 32 inches will fall by Rs 2,500 to Rs 85,000.
5. Medicines to get cheaper
- Thirty-three life-saving medicines used in the treatment of cancer and other serious diseases have now been made completely tax-free. Earlier, they were subject to 12% GST.
- Three other special life-saving drugs have also been moved from the 5% tax bracket to zero tax.
6. Insurance policies to become cheaper
- With the GST on life insurance and health insurance being reduced from 18% to zero, the number of people opting for insurance is expected to increase.
7. Dream of buying a car to become affordable
Earlier, buyers had to pay 28 percent tax on vehicles like bikes and cars. Now, the tax has been reduced to 18 percent. The prices of small and hatchback cars have dropped by Rs 70,000 to Rs 1.5 lakh. Premium SUVs are now cheaper by Rs 1.25 lakh to Rs 2.5 lakh. The prices of luxury vehicles have come down by Rs 3.5 lakh to as much as Rs 30.5 lakh.
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest India News on India.com.