Next-Gen GST Reforms: Following Prime Minister Narendra Modi’s pledge of a “big Diwali gift” in the shape of “substantial” tax cuts, the GST Council recently wrapped up its 56th meeting by agreeing on several tax cuts for the general people. The government estimated that Rs 48,000 crore would be spent on the “next-gen” GST reforms.
Here is the full List of New GST Reforms:
❂ Daily Essentials:
⦿ Hair oil, shampoo, toothpaste, toilet soap bar, toothbrushes, shaving cream – 18% to 5%
⦿ Butter, ghee, cheese & dairy spreads – 12% to 5%
⦿ Pre-packaged namkeens, bhujia & mixtures – 12% to 5%
⦿ Utensils – 12% to 5%
⦿ Feeding bottles, napkins for babies & clinical diapers – 12% to 5%
⦿ Sewing machines & parts – 12% to 5%
❂ Farmers & Agriculture:
⦿ Tractor tyres & parts – 18% to 5%
⦿ Tractors – 12% to 5%
⦿ Specified bio-pesticides, micro-nutrients – 12% to 5%
⦿ Drip irrigation systems & sprinklers – 12% to 5%
⦿ Agricultural, horticultural or forestry machines (soil preparation, cultivation, harvesting & threshing) – 12% to 5%
❂ Healthcare:
⦿ Individual health & life insurance – 18% to Nil
⦿ Thermometers – 18% to 5%
⦿ Medical grade oxygen – 12% to 5%
⦿ All diagnostic kits & reagents – 12% to 5%
⦿ Glucometer & test strips – 12% to 5%
⦿ Corrective spectacles – 12% to 5%
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❂ Education:
⦿ Maps, charts & globes – 12% to Nil
⦿ Pencils, sharpeners, crayons & pastels – 12% to Nil
⦿ Exercise books & notebooks – 12% to Nil
⦿ Erasers – 5% to Nil
❂ Automobiles:
⦿ Petrol & petrol-hybrid, LPG, CNG cars (≤1200cc & ≤4000mm) – 28% to 18%
⦿ Diesel & diesel-hybrid cars (≤1500cc & ≤4000mm) – 28% to 18%
⦿ 3-wheeled vehicles – 28% to 18%
⦿ Motorcycles (350cc & below) – 28% to 18%
⦿ Motor vehicles for transport of goods – 28% to 18%
❂ Electronic Appliances:
⦿ Air conditioners – 28% to 18%
⦿ TVs (above 32″, including LED & LCD TVs) – 28% to 18%
⦿ Monitors & projectors – 28% to 18%
⦿ Dishwashing machines – 28% to 18%