Changes in GST slab.
Today, Navratri is starting with double happiness in the country. With the beginning of this festive season, many things will become cheaper from today due to change in GST rates. The items on which GST rates are going to change, include everyday needs to vehicles and medicines, which directly affect the common man.
The GST Council has decided to do two slabs instead of four slabs of goods and service tax earlier this month. Now tax rates will be five and 18 percent while a special rate of 40 percent will be applicable on luxury goods. Except for cigarette, tobacco and other related items, new tax rates will become effective from today.
Soap, powder, coffee, diapers, biscuits, ghee, oil will be cheap
Major companies making everyday needs (FMCG) have cut the prices of their products to give the benefit of GST deduction to consumers. In such a situation, daily items of daily needs like soap, powder, coffee, diapers, biscuits, ghee and oil will become cheaper.
The move is expected to increase consumption and sell bounce during the upcoming festive session, which begins with Navratri. FMCG companies have taken the benefits of GST 2.0 to consumers without any delay. From today, these companies have released a revised list of maximum retail price of their products including soap, shampoo, baby diapers, brushing, razor and after-sheave lotion.
Benefits of GST rate cut
Its purpose is to give the benefit of cuts in goods and service tax (GST) rate to consumers. Companies like Proctor & Gamble, Emami and HUL have released a new price list. This has been informed about this through the website of the companies to their respective distributors and consumers.
Proctor & Gambal has released a revised list of its products. In this, he has reduced the prices of brand products like Vicks, Head and Shoulders, Pantin, Pampters (Diapers), Gillette, Old Spice and Oral-B etc.
P&G India has also reduced the prices of products related to children’s care. In these products, GST on diapers will decrease from 12 percent to five percent and GST on baby wipes will be reduced from 18 percent to five percent. New rates will be effective from today.
The company is also going to reduce the prices of Gillette and Old Spice. Prices of Emami Boroplus antiseptic cream, Navratna Ayurvedic oil and Zandu Bam etc. are also decreasing. HUL has also announced a decrease in prices of its consumer product range including Dove Shampoo, Horlicics, Kisan Jam, Bru Coffee, Lux and Lifeboy Soap after GST reforms.
Medical expenses will be less
Now glucometer, diagnostic kits and most medicines will take GST only 5 percent. Earlier they used to come in slabs of 12 percent or 18 percent. The government has also issued instructions to reduce MRP to medical stores or sell medicines at low rates.
The cost will be reduced to build a house
Changes in GST slab will also provide relief to the builders. The government has reduced GST from 28 percent to 18 percent on cement, which will reduce the cost of building a house. Both the builders and homebayers will get the benefit.
Cut in the prices of electronics goods
At the same time, the prices of things like TV, AC, fridge, washing machine will also be cut. Earlier, 28 percent GST was used on them, now they have been kept in a slab of 18 percent. Companies have announced to reduce prices, due to which these products will now be accessed by more people.
Most benefits on vehicles
Small vehicles will now have 18 percent GST and 28 percent GST on big trains. Earlier, on vehicles like SUV and MPV, 22 percent cess was also levied with 28 percent tax. Now the total tax has come down to about 40 percent, due to which the prices of big trains can be reduced slightly.
Relief in beauty and fitness service also
Now GST has been reduced from 18 percent to 5 percent on services like Salon, Yoga Center, Fitness Club, Health Spa, although now they will not get input tax credit.
Will they be taxed the most?
At the same time, the government has implemented 40 percent GST slab on some things, due to which their prices have risen. These include…
- Services related to cigarette, gutkha, paan masala, online gambling.
- Big vehicles (above 1200cc, long than 4 meters)
- Bike above 350cc
- Soft drinks and flavored water like cold beverages