GST Reforms: Union Finance Minister Nirmala Sitharaman has announced the next phase of GST reforms on Wednesday. Let us know which goods will be cheaper and which will affect inflation.
GST Rate Cuts: After giving relief in income tax, the Modi government has taken a big step in GST. The government has now fixed only two rates of GST, which is 5 percent and 18 percent, simplifying the tax structure as per its promise. This will make hundreds of items used by the common man, farmers and small businessmen cheaper. Under the new system, the prices of everyday things like bread, paratha and milk will decrease in the prices of many goods from AC and car.
The government has completely abolished the current 12 and 28 percent slabs. At the same time, a new slab of 40 percent has been placed on “Sin Goods” like tobacco and alcohol. That is, the prices of these products will now be higher than before. The new GST rates will be applicable from 22 September 2025. After this it will be interesting to see which goods will be cheap and on whom the burden of inflation will increase.
Tax on car-AC also reduced
The new GST structure implemented by the Modi government has brought great relief to the common people. Many items from everyday needs to agriculture, education and health sector have become cheap now. At the same time, now the tax on hair oil, shampoo, toothpaste, soap, toothbrush and shaving cream has been reduced from 18% to 5%. Apart from this, GST has also declined from 12% to 5% on the things used in the house like butter, ghee, cheese, dairy spread, packed salty, bhujia, utensils, children’s feeding bottle, napkins, diapers and sewing machines.
GST reduced from 18% to 0%
GST on health and life insurance has been reduced from 18% to 0. The tax on thermometer, medical oxygen, diagnostic kits, glucometer, test strips and glasses has been reduced from 12% to 5%. There will no longer be GST on things like maps, charts, globes, pencils, sharpeners, crayons, notebooks and eraser. That is, the tax on these has come down from 12% to zero.
Farmers will benefit
GST on tractor tires and parts has been reduced from 18% to 5%. Tax on tractors, bio-pesticides, drip irrigation systems, sprinklers and farming machines has been reduced from 12% to 5%. At the same time, small cars of petrol and diesel, hybrid cars, bikes up to 350 cc, auto and goods carrying vehicles will become cheap.
Also read: GST RATE: Beedi-Tobacco will have to pay more tax, know which cars will be 40% GST
Electronic goods become cheap
GST on air conditioner, 32 -inch TV, monitor, projectors and dishwashing machines has been reduced from 28% to 18%. The government claims that this major change will reduce the burden on the common man’s pocket and the market will accelerate. Let us know that these new rates will be applicable from 22 September 2025.