NEW DELHI, Sept 3: The Goods and Services Tax (GST) Council on Wednesday announced that only two rates will remain from September 22 – 5 per cent and 18 per cent. There is a special rate of 40 per cent which will apply only to pan masala, cigarette, aerated water with added sugar, carbonated beverages, etc and such other “sin” and luxury goods.
Following items will get cheaper bring major relief to the middle and lower class families:
Milk, roti, paneer, ghee: 5 per cent
Biscuits, sauces, pasta: 5 per cent
Dry fruits, pizza bread: 5 per cent
Oxygen, glucometers, kits: Nil
Critical drugs, bandages: 5 per cent
Soap, shampoo, toothpaste: 5 per cent
Candles, toys, furniture: 5 per cent
Solar, wind devices: 5 per cent
Biogas equipment: 5 per cent
Textiles, TV, cement rationalised to 5 per cent or 18 per cent, based on item classification.
Small cars, bikes: 18 per cent
There is also exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for common people and increase insurance coverage in the country. In addition, GST has been removed from Ultra-High Temperature (UHT) milk, pre-packaged and labelled chena or paneer, and all Indian breads such as chapati, roti, paratha, parotta, etc.
However, there is a special tax slab of 40 per cent on luxury cars, big SUVs, cigarettes, tobacco, gutkha, and carbonated drinks with added sugar, etc.
(Manas Dasgupta)