Next-Gen GST Reforms on Roti, Kapada aur Makaan to Bring Huge Relief

New Delhi: Ahead of the festive season like Dussehra and Diwali, now the common man's most necessities like roti, kapada aur makaan are all set to be cheaper and affordable for the middle class from September 22 this year. The 56th GST Council chaired by Union finance minister Nirmala Sitharaman approved the reduction of GST rates of almost all the commonly-used essential food items, apparel and textile products and construction materials like marble, cement and granite blocks. Besides, the council also approved nil tax on other necessities like individual life insurance premium and rare disease medicines, and slashed other life-saving drugs and medical equipment as well.

A day after the Sitharaman’s announcement of the GST Council decision, the government on Thursday clarified several frequently asked (FAQs) to assure the public that the next-gen GST reforms will bring in a huge relief not only for the middleclass but also all sections of society. “The changes in GST rates will be notified in the rate notification and it will be placed on the CBIC website,” the government said.

When a commonly asked question on bread was put as what is the reason for revising GST rate only on specific varieties of Indian bread, the government clarified that bread was already exempt while pizza bread, roti, porotta, paratha etc attracted different rates and all Indian breads, by whatever name called have been exempted.

Similarly, on the hike of carbonated beverages of fruit drink or carbonated beverages with fruit juice, it said that these goods attracted compensation cess in addition to GST. “Since it has been decided to end compensation cess levy, the tax has been increased to maintain the pre rate rationalization level of tax,” the government said.

The most necessities of a common man

Roti (Essential Food Items)

GST reduction from 5% to Nil: Roti or paratha, ultra high temperature milk, chhena, paneer; From 12% or 18% to 5%: Almost all of the food items such as packaged namkeens, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, ghee, etc;

Kapada (Clothing, Apparel & Textile)

Correction of long pending inverted duty structure for the man made textile sector by reducing GST rate on manmade fibre from 18% to 5% and manmade yarn from 12% to 5%

Makaan (Housing & Construction)

Reduction of GST from 28% to 18% on cement; from 12% to 5% on labour intensive goods such as handicrafts, marble and travertine blocks, granite blocks

Health & insurance

Reduction of GST from 12% to Nil: 33 lifesaving drugs; medicines and from 5% to Nil: 3 lifesaving drugs & medicines used for treatment of cancer, rare diseases and other severe chronic diseases; from 12% to 5%: various medical equipment such as wadding gauze, bandages, diagnostic kits and reagents, glucometer; from 18% to 5% : on various medical apparatus and devices used for medical, surgical, dental or veterinary usage