In the 56th meeting of the GST Council, Finance Minister Nirmala Sitharaman has decided to end 4 slabs of GST and make a new system of only 2 slabs. Now these items will fall under just 5% and 18% GST slabs. The revised GST rates will be implemented starting September 22. After changing the rates, the central government has also answered all the questions related to the general public and the industry. Let us know what changes have been made, who will benefit, who will suffer, on which things this tax will be applicable, as well as what will become cheaper and what will become expensive…
Big reversal in GST
From September 22, clothes, shoes, and medicines will become cheaper in the new tax slab, but heavy tax will be levied on luxury vehicles and sin goods. According to the decision, the things which are under the 12% slab have now been shifted to the 5% slab. At the same time, the things which are in the 28% slab have now been shifted to the 18% slab. Apart from this, now 40% GST will have to be paid on luxury items and sin goods. Let us tell you that Prime Minister Narendra Modi had talked about ‘GST 2.0’ on the occasion of Independence Day 2025, in view of that a big step has been taken in this direction. With the 12% and 28% GST slabs removed, the structure now has three categories — 5% for essentials, 18% for the majority of goods and services, and 40% for luxury and sin items.
What is cheap, what is expensive?
- Items used in everyday life which were earlier under the purview of 12 and 18 percent GST. Such as hair oil, shampoo, toothpaste, toilet soap, toothbrush, shaving cream, butter, ghee, cheese, pre-packaged namkeen, bhujia, mixture, utensils, baby feeding bottles, baby napkins, diapers etc. Now 5 percent GST will be levied on them, due to which these things will become cheaper.
- Electronics and automobiles will now have to pay 18 percent GST, which earlier came under the purview of 28 percent GST. In such a situation, now petrol, LPG, CNG cars, diesel, 3-wheeled vehicles, motor bikes (with 350cc or less engine), air conditioners, LED-LCDs more than 32 inches, monitors, projectors, dish wash machines, all these things were expensive due to 28 percent GST.
- Talking about the education sector, these will now be out of the scope of GST. Maps, charts, globes, pencils, sharpeners, crayons, pastels, exercise books, notebooks, earlier when these items came under 5% and 12% GST slab, their prices were relatively high for the farmers.
- Earlier 12% and 18% GST was applicable on items related to the agriculture sector, but now only 5% GST will be applicable on them. This includes essential items for farmers such as tractors, its tyres and spare parts, bio-pesticides, micro nutrients, drip irrigation systems, sprinklers, and machines related to farming and gardening (such as cultivation, harvesting and threshing equipment).
- Talking about the health sector, Finance Minister Nirmala Sitharaman has said that GST will no longer be levied on many food items including milk and roti, health and life insurance and 33 types of medicines. Earlier these things were expensive due to coming under the purview of 12 and 18 percent GST. ‘This is considered to be the biggest reform of GST because now many everyday items will become cheaper for the common man.
