New Delhi: The Goods and Services Tax (GST) will have just two main slabs – 5% and 18% – from September 22. A higher 40% rate will apply only to products like pan masala, cigarettes, sugary aerated drinks, and other carbonated beverages.
Finance Minister Nirmala Sitharaman said that several items commonly bought by the middle class now fall under the 18% tax slab. These include televisions, air-conditioners, and bikes with engines below 350 cc.
“These reforms have a multi-sectoral and multi-thematic focus, aimed at ensuring ease of living for all citizens and ease of doing business for all,” Sitharaman’s office said in a post on X.
Petrol, LPG and CNG vehicles with engines under 1200cc and length below 4,000 mm, along with diesel vehicles up to 1,500cc and 4,000 mm in length, will now attract 18 per cent GST instead of 28 per cent.
The finance minister said that all petrol cars over 1200cc and diesel vehicles above 1500cc will be moved to 40 per cent GST.
A 40 per cent GST will be imposed on all automobiles above 1200cc and longer than 4,000 mm, motorcycles over 350cc, racing cars, and yachts and aircraft for personal use.
EVs will continue to attract a 5 per cent GST, while three-wheelers will be charged at 18 per cent.
Other items that will now fall under the 18 per cent slab include dishwashers, monitors and projectors.
ALSO READ: GST Rate-Cut – Milk, Paneer, All Types Of Indian Breads Now At 0% – See What Else Got Cheaper
