Govt Cuts GST: Briefing the media in New Delhi today, Finance Minister Nirmala Sitharaman said that GST on common man and middle-class items has been reduced from 18 per cent or 12 per cent to 5 per cent.
The Finance Minister informed that items such as hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles will now have only 5 per cent GST. She further said that GST on ultra-high temperature milk, chena and paneer has been reduced to zero from 5 per cent, while all Indian breads will now see a nil rate. Ms. Sitharaman also announced that GST on food items such as namkeen, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter and ghee has been reduced from 12 per cent or 18 per cent to 5 per cent.
The Minister added that the GST slab on items like air-conditioning machines, televisions above 32 inches, all types of TVs, dishwashing machines, small cars and motorcycles has been lowered to 18 per cent from 28 per cent. She said that labour-intensive industries have given strong support, while farmers and the agriculture sector will also benefit from today’s decisions. The Minister said, GST on all agricultural equipment has been reduced from 12 per cent to 5 per cent.
# Exemption of GST on all individual life insurance policies, whether term life, ULIP, or endowment policies, and reinsurance.
# Exemption of GST on all individual health insurance policies, including family floater policies and policies for senior citizens, and reinsurance
The Finance Minister further said that Prime Minister Narendra Modi set the tone for the next generation of tax reforms and ensured that people receive benefits at the earliest. She said that the government has corrected inverted duty structure issues, resolved classification-related matters, and ensured greater stability and predictability in the GST regime.
The 56th Meeting of the GST Council was held in New Delhi today under the chairmanship of the Finance Minister. The Council deliberated on India’s next-generation GST reforms, including rationalisation of tax rates and simplification of compliance. Union Minister of State for Finance Pankaj Chaudhary, Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir, Meghalaya and Odisha were present in the meeting. Deputy Chief Ministers of Arunachal Pradesh, Bihar, Madhya Pradesh, and Telangana, Governor of Manipur and Finance Ministers of several States and Union Territories have also participated in the meeting.
