From groceries and medicines to cement and small cars, a wide range of essentials will now cost less after the GST Council approved new changes in indirect taxes at its 56th meeting.
At the same time, some luxury and non-essential products will become significantly more expensive as the GST Council raised rates on tobacco, fizzy drinks, and high-end vehicles.
What Gets Cheaper After the GST Council Meeting
Daily Essentials: UHT milk, paneer, parathas, pizza bread, khakra, and roti have been exempted from GST. Butter, ghee, cheese, jams, sauces, soups, pasta, namkeens, and confectionery will now attract just 5% GST, down from 12–18%. Dry fruits such as almonds, pistachios, and cashews, along with citrus fruits, are also taxed at 5%.
Healthcare: Life-saving drugs such as Aglasidase Beta, Onasemnogene, Daratumumab, and Alectinib will now be tax-free. Most medicines, medical devices, diagnostic kits, bandages, thermometers, and oxygen equipment will be taxed at 5% instead of 12–18%.
Personal Care and Consumer Goods: Hair oil, shampoos, toothpaste, soaps, shaving products, talcum powder, toothbrushes, candles, and safety matches now attract only 5% GST. Stationery items like notebooks, pencils, sharpeners, and erasers will also get cheaper, along with toys, sports goods, handicrafts, and furniture made from bamboo or cane.
Construction and Automobiles: Cement rates have been cut from 28% to 18%. Tractors, bicycles, motorcycles under 350cc, small cars (petrol/diesel <1200–1500cc, length <4m), electric and hybrid vehicles, and ambulances will see reduced levies. Marble, granite blocks, and eco-friendly building materials such as particle boards made from crop residue will also attract just 5% GST.
What Will Get Costlier
Pan masala, gutkha, chewing tobacco, and cigarettes will now draw 40% GST, up from 28%. Carbonated soft drinks, caffeinated beverages, and fruit-based fizzy drinks also fall under the 40% bracket.
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