The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22. The big decision, which the Centre claims as a ‘Diwali gift,’ got a round of applause from both traders and the common man. The complicated tax slabs that gave headaches to small traders with four slabs – 5, 12, 18 and 28 per cent, have now been rolled into two slabs—5 and 18 per cent.
The new move may help commoners with more money in hand, which the government hopes will be re-routed into the economy, giving it a boost with a revenue implication of ₹48,000 crore. According to Union Finance Minister Nirmala Sitharaman, all the decisions were made unanimously in the GST Council.
A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes. Here are the full list of items that have received a rate cut:
GST rates: Items under 0%
- 33 Life-saving drugs and medicines, Cancer medicines, Medication for rare diseases,
- Individual life insurance, Health policies
- Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Notebooks, Erasers
- Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti
GST rates: Items under 5%
- Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream
- Butter, Ghee, Cheese & dairy spreads, Namkeens, Utensils
- Feeding bottles, napkins for babies and clinical diapers
- Sewing machines and parts
- Thermometer, Medical grade oxygen, All diagnostic kits and reagents, Glucometer and test strip
- Corrective spectacles
- Tractor tyres, parts, tractors
- Specified bio-pesticides, Micro-Nutrients
- Drip irrigation system and sprinklers
- Agricultural, horticultural or forestry machines for soil preparation
- Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit
- Ground-nuts, Cashew nut, roasted, salted or roasted and salted, Other roasted nuts and seeds, squash of Mango, Lemon, Orange, Pineapple or other fruits
- Chocolates and other food preparations containing cocoa
GST rates: Items under 18%
- Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm)
- Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm)
- 3 Wheeled Vehicles
- Motorcycles (350 cc & below)
- Motor Vehicles for the transport of goods
- Air Conditioners
- Televisions (above 32″) including LED & LCD TVs
- Monitors & Projectors
- Dish Washing Machines
- Road tractors of engine capacity more than 1800 cc
Click here to view full list – https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2163555
GST Rates: Items Under 40%
- Pan masala, Cigarettes, Gutka, Chewing Tobacco, Bidis
- Caffeinated beverages, Aerated waters containing added sugar or flavour, Non-alcoholic beverages
- Smoking pipes
- Motorcycles exceeding 350 cc
- Aircraft for personal use
- Betting, casinos, gambling, horse racing, lottery and online money gaming
- Yachts
- Revolvers and pistols
