• Source:JND
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The GST Council on Wednesday approved the proposed two-tier tax structure of 5 and 18 per cent. The council stated that the changes will be implemented from September 22. Union Finance Minister Nirmala Sitharaman, while providing details, stated that GST on life-saving drugs and medicines will come down to zero from 12 per cent. She further stated that the tax on several agriculture products, including tractors, forestry machines, and composting machines will be lowered to 5 per cent from 12 per cent.

"GST on 33 life-saving drugs and medicines has come down from 12% to zero...," FM Sitharaman stated while addressing the press. "Agriculture goods such as tractors, agricultural, horticultural and forestry machines for soil preparation or cultivation, harvesting or threshing machines, including straw or fodder balers, grass or hay movers, composting machines etc. are all coming down from 12 to 5%. Reduction of GST from 12% to 5% on 12 specified bio-pesticides. Also, from 12 to 5 is natural menthol," she added.

Prime Minister Narendra Modi, in a post on X (formerly Twitter), stated that the new tax structure will benefit the different sections of the society. "Glad to state that GST Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth," PM Modi stated in his post.

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Finance minister stated that several common use food and beverages, including condensed milk, sausages and meat, sugar boiled confectionery, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles will witness a cut in tax rate to 5 per cent. She further stated that ice cream, pastry and biscuits, corn flakes and cereals, and sugar confectionery are also set to see a cut in tax rate.