GST: What's Cheaper, What's Expensive and What's Nil

Hyderabad: In a major push towards simplifying India’s indirect tax regime in GST 2.O, the Centre unveiled the sweeping next-gen GST reforms on Thursday, potentially ushering in a two-slab structure and a 40 per cent rate. The 56th GST Council meeting chaired by Union finance minister Nirmala Sitharaman, approved the rate rationalisation. There will be a 2-slab GST with 5 per cent and 18 per cent as the tax rates along with a 40 per cent special rate for sin goods. The new rates are set to take effect from the 22nd of September.

Reduction of 5% to 0%:

Ultra high temp milk

Chena/Paneer

Indian breads

Reduction from 12-18% to 5%:

Hair Oil

Toilet Soaps

Shampoo

Toothbrush

Bicycle

Table – Chairs

Namkeen

Pasta

Instant Noodle

Coffee

Corn Flakes

Butter

Ghee

12 specifies Bio Pesticides

Handicrafts

Marble

Grantine blocks

Several Drugs

Diagnostics Kits

Spectacles

Renewable Energy Devices – Windmills, Bio energy plants, PV Cells, Solar Heaters

Reduction from 28% to 18%:

AC

TVs (Over 32 inches)(All TVs at 18%)

Small cars

Motorcycles (Less than 350 CC)

Tractors

Forestry

Cement

Buses, Trucks

All auto parts

Three Wheelers

Reduction from 12% to NIL:

33 life-saving drugs

40% rate (Sin and Luxury Goods):

Pan Masala

Cigarette/tobacco

Aerated Water containing added sugar, carbonated beverages

Mid-size and large cards

Motorcycles (Over 350 CC)

Aircraft for personal use

Yacht for pleasure