New Delhi, September 4 (HS): The 56th meeting of the Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, has introduced a sweeping revision to GST tax slabs. The existing 12% and 28% categories have been scrapped, replaced with revised slabs of 5% and 18%, effective from September 22, the first day of Navratri.
This major shift brings relief for households, with numerous everyday goods now classified under the 5% bracket instead of 18% or 12%. Items set to become cheaper include edible oils, shampoos, toothpaste, bathing soaps, toothbrushes, shaving cream, dairy products like butter, ghee, paneer, packaged snacks, utensils, baby napkins and diapers, sewing machines, eyeglasses, children’s stationery, life insurance, thermometers, small medical equipment, and tractors.
In a push for agriculture, GST has also been reduced on hand pumps, drip irrigation equipment, sprinkler nozzles, soil-preparation and horticulture machinery, as well as harvesting and threshing machines.
Automobiles are another sector witnessing relief. Small cars and two-wheelers will now attract only 18% GST instead of 28%. This includes petrol, petrol-hybrid, LPG, and CNG cars up to 1200 cc, diesel and diesel-hybrid cars up to 1500 cc, three-wheelers, and motorcycles up to 325 cc. Additionally, appliances such as air conditioners, televisions above 32 inches, monitors, projectors, and dishwashers will also move from the 28% slab to the 18% slab, reducing prices.
However, several high-end and luxury items will become more expensive. The Council has approved raising the GST on aerated beverages, sugary drinks, cars above 1200 cc petrol/1500 cc diesel or longer than 4,000 mm, motorbikes above 350 cc, racing cars, luxury vehicles, revolvers, pistols, cigarettes, tobacco, non-alcoholic beverages, and entry to sports events, placing them in the 40% category replacing the earlier 28%.
The restructuring is aimed at simplifying the tax system while striking a balance between affordability for essential products and higher levies on luxury and sin goods.
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Hindusthan Samachar / Jun Sarkar
