A big reform has been done in the GST Council meeting. In the meeting chaired by Finance Minister Nirmala Sitharaman, it has been decided that now only 2 slabs of GST will be applicable. Of these, the first 5% and the second 18 percent. Apart from this, there will also be a special slab. The slab of 12 percent and 28 percent has been completely abolished. This decision will be applicable from 22 September.
This important decision has been taken late Wednesday evening in the 56th meeting of GST Council. Finance Minister Nirmala Sitharaman said that the essential commodities of the common man will now be charged not only 12 and 18 percent but only 5 percent GST. Apart from this, no GST will be applied on ultra high temperature milk, chhena, cheese, bread. Apart from this, 18 percent GST will now be charged on AC, resident machine, 38 inches of TV, small cars etc., while earlier 28 percent GST was collected on them.
What cheap and what expensive?
- Finance Minister Nirmala Sitharaman said that 12 percent GST on the farmer and his product has also been reduced to 5 percent, besides the rates of GST have been reduced on marble, leather etc.
- Cement will now be charged 18 percent GST instead of 28. Health equipment, 33 medicines will no longer have GST. 5 percent GST will also be on glasses and vision equipment.
- Luxury items, cars and bikes will be more expensive. They will have a special slab. Apart from this, tobacco, Zarda, Pan Masala, Flavor, Fruit Drink and other packed drinks will be expensive. Bikes with engine more than 350 cc will be expensive.
- GST on health insurance and life insurance policy has also been given great relief. Large relief has also been given on the shoe and cloth, now only 5 percent GST will be replaced instead of 12 percent.
(News is being updated)