On 15 August 2025, Prime Minister Modi had said the ramparts of the Red Fort on Independence Day that ‘I am going to give a great gift this Diwali. In the last eight years, we have made major improvements in GST and have simplified the tax system. Now, the time of review has come. We have done this, discussed with the states, and the next generation of GST reforms is bringing ‘. Now that promise has come to the fore. From Monday, only two primary slabs instead of the first four slabs of GST. Additionally, a high slab will be applicable on some luxury and syn products, as announced by Finance Minister Nirmala Sitharaman on 3 September.
GST was implemented eight years ago, in which a tax was made by including central taxes and state charges like VAT. Earlier, GST had four slabs – 5%, 12%, 18% and 28%. Along with this, cess was also imposed on items like automobile, tobacco, aerated drinks, coal and lignite to compensate for the state’s revenue deficit. Under GST 2.0, the system has been simplified by 5 per cent and 18 per cent up to two slabs, while luxury and sin products will be directly taxed without any cess.
Most of the goods which were taxed at 12 per cent and 18 per cent, now 5 per cent have come into the slab or they have been completely freed from GST. Also, many items with 28 percent slab have now come in the radius of 18 percent or 40 percent. From Monday, daily use like milk products, main foods, consumer products, health service, education and even agricultural products will become cheap.
By the way, we have already mentioned all the goods and sectors on which tax is going to be reduced and the goods are going to be cheap. But it is also very important to mention those products, which will be completely out of the scope of tax. This means that what are the goods from Pencil-Shapner to Paratha-Khokhara, which will not be taxed at all, let us tell you too…
Food products will no longer be taxed
Today, from Monday, there will be no GST on many food products used daily in homes. Ultra-high temperature (UHT) milk, pre-pack and labeled chena or cheese, and all Indian breads such as chapati, roti, paratha, khakhara and pizza bread are exempted from GST.
Medicines and health services
In the Health Service sector, 33 life saving medicines and medicines, which used to be 12 percent GST earlier, have become tax free from today. Three other special medicines used in the treatment of cancer, rare diseases and chronic diseases, which were earlier used 5 % GST, are now under the purview of GST. All personal insurance and life insurance policies, including family floater plans and reinuously, have been implemented on 0 % GST, which has made more than the families.
Education and stationery also GST free
Paper and paperboard without coating to make practice books, graph books, laboratory notebooks and notebooks have also been excluded from the purview of GST. Now students and schools are expected to get a lot of relief. Map, Atlas, Wall Maps, Globe etc. have also been put under the purview of zero GST. Pencil sharpener, rubber, pencil, crayon, pastel, drawing charcoal and tailor chalk, all have also been given exemption. Hand -made paper and paperboard have also been included under this relief.
Defense and Aviation Import
Today i.e. from 22 September, discounts have also been implemented in sectors associated with National Security and Aviation. Specific defense and aerospace products such as flight speed and target speed simulator, missiles, rockets, drones, unmanned ships, C-130 and C-295 MW have also been excluded from IGST’s assertion of military aircraft, deep submerged ships, sonoboys and special high performance batteries etc.
Under the diamond prescript authentication, imports of discounts up to 25 cents and technical documents of naturally chopped and polished diamonds have also been excluded from the purview of GST. The artifacts and antiques brought for exhibitions are included in this category.