• Source:JND
Add as a preferred

GST New Rates: Finance Minister Nirmala Sitharaman on Wednesday announced that the two-tier tax structure of 5 and 18 per cent will be implemented from September 22. She announced that the new changes will provide a great relief to the tax payers as GST on multiple daily use products has been reduced. While providing details, she stated that GST on life-saving drugs and medicines will come down to zero from 12 per cent. FM Sitharaman emphasised that the proposed rates were passed unanimously by all the parties.

Products/ services under 5 per cent GST: 

- FM Sitharaman stated that the individual life insurance and health policies will be exempted from GST

- There will be no tax on roti, paratha, and life-saving drugs, informed FM Sitharaman. 

- 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.

ALSO READ: GST 2.0 New Rates Announced: Full list Of What Will Get Cheaper And Costlier

- 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.

- FM Sitharaman stated that several other daily use products, including tooth powder, feeding bottles, tableware, kitchenware, umbrellas, and utensils have been brought under 5 per cent tax bracket.

- Bicycles, bamboo furniture and combs are also set to witness rate cut from 12 per cent to 5 per cent, Sitharaman informed.

ALSO READ: GST Reforms: Council Approves 5% And 12% Tax Slabs From Sept 22; 40% GST On Luxury, Sin Goods

- FM Sitharaman also stated that shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap and hair oil are also set to be brought under 5 per cent bracket from 18 per cent.

The government has collected Rs 16,398 crore from goods and services tax (GST) levied on healthcare and life insurance in FY24. Of this, Rs 8,135 crore from life insurance and Rs 8,263 crore from health insurance. 

(Inputs from PTI)