The central government has announced to implement the biggest improvement in GST (Goods and Services Tax) so far. In the decision taken on the day of the GST Council meeting, the existing four slabs of tax have been reduced to just two. Slabs with 12% and 28% have been finished, now only 5% and 18% rates will be there. Today is the second day of the council meeting. Even today many big announcements can be made.
The government has named it “Next-Generation GST Reform”, which will be applicable across the country from 22 September 2025. This will directly affect the general public, farmers, students, middle class and small businessmen. The government claims that this decision will speed up economic activities along with making the livelihood cheaper.
Relief on everyday goods
Many products used daily from the kitchen to the bathroom will not have to pay expensive tax. Now things like hair oil, shampoo, toothpaste, toilet soap, shaving cream and toothbrush will take only 5% GST instead of 18%. Apart from this, the tax on butter, ghee, cheese, dairy spreads, packaged salty and mixture has been reduced from 12% to 5%. Feeding bottle, clinical diapers and sewing machines have also come into low tax slab, so that these goods will now be found cheap.
Treatment and insurance will be economical
The government has also taken a big step regarding the health sector. Now 18% GST on health and life insurance has been completely removed. This will provide direct relief to the premium payers. Medical-grade oxygen, diagnostic kits, glucometer, test strips, correct spectacles and thermometer will now have only 5% GST. This change has brought special relief for those who spend regularly on medical products and services.
Tax -free things related to education
Many items related to children’s education have now become completely tax free. Maps, charts, globes, exercise books, notebooks, pencil, sharpener, crayon, pastel and eraser had the first 5% or 12% GST, which has now been reduced to zero. This will reduce the cost related to school education and give direct relief to the parents.
Farmers also benefit
Focusing on the agricultural sector, the government has given a big gift to the farmers. Now GST has been reduced from 18% to 5% on tractor tires and parts. The tractor will also be levied only 5% tax instead of 12%. Bio-pesticides, micronutrients, drip irrigation systems and modern agricultural machinery have also been brought into 5% tax slab. This will reduce the cost of farming and farmers will directly benefit.
Now it will be easy to buy vehicles
Tax rates have also been cut to provide relief to the automobile sector. Now some of the petrol, diesel and CNG vehicles, which used to come in 28% tax slab, have been brought to 18% slab. Three-wheelers, motorcycles up to 350cc and commercial vehicles used for goods transport will also be used 18% GST. This will speed up the auto sector and the vehicles will be cheaper for the customers.
Electronics and home appliances will also be cheap
The GST on air conditioner, 32 -inch LED/LCD TV, monitor, projector and dishwasher has now been reduced from 28% to 18%. This will reduce the prices of consumer durables and reduce the burden on the domestic budget.
Now it will be easier to connect with GST
The government not only reduced the tax rate, but has also made the entire process easy and transparent. Now automatic GST registration will be completed in only 3 working days. The process of provisional refund and tax credit has also been simplified and intensified through system-based risk evaluation. This will give the real benefit of ‘Ease of Doing Business’ to small and medium traders.
Big gift to countrymen before Diwali
Welcoming the decisions of GST Council, Prime Minister Narendra Modi said that he had talked about GST reform in the Independence Day speech. He said, GST rate deduction and processing reforms will directly benefit the citizens, farmers, msmes, middle class, women and youth of the country. This step will make trade easier in the country and will improve the lives of citizens.