The Goods and Services Tax (GST) on edibles like paneer and all kinds of Indian breads, including roti and paratha, has been slashed to nil, while GST on daily use items like hair oil and toilet soaps have been reduced from the earlier 18 or 20 per cent to 5 per cent.
Union Finance Minister Nirmala Sitharaman announced the move on Wednesday after the 56th GST Council Meeting in New Delhi, where the dual slab system was approved. The panel approves simplifying the GST from the current four slabs -- 5, 12, 18 and 28 per cent -- to a two-rate structure -- 5 and 18 per cent, which will take effect from September 22, the first day of Navratri, she added.
While the daily use items will continue to attract a nil tax rate, GST on common use food and beverages like butter and ghee, to dry nuts, will be cut from the current 18 per cent to 5 per cent.
However, "sin products" like tobacco gutkha, tobacco products and cigarettes will continue to be charged at the current 28 per cent plus a compensation cess till such time that loans taken to pay states for revenue loss is fully paid back, Sitharaman added.
Daily Essentials
| Items |
Earlier Rate |
New Rate |
| Hair oil, shampoo, toothpaste, toilet soap bar, toothbrushes, shaving cream |
18% |
5% |
| Butter, ghee, cheese, and dairy spreads |
12% |
5% |
| Pre-packed namkeens, bhujia, and mixtures |
12% |
5% |
| Utensils |
12% |
5% |
| Feeding bottles, napkins for babies, and clinical diapers |
12% |
5% |
| Sewing machines and parts |
12% |
5% |
Healthcare Sector
| Items |
Earlier Rate |
New Rate |
| Individual health and life insurance |
18% |
Nil |
| Thermometer |
18% |
5% |
| Medical Grade Oxygen |
12% |
5% |
| All diagnostic kits and reagents |
12% |
5% |
| Glucometer and Test Strips |
12% |
5% |
| Corrective spectacles |
12% |
5% |
Education Sector
| Items |
Earlier Rate |
New Rate |
| Maps, charts, and globe |
12% |
Nil |
| Pencils, sharpeners, crayons, and pastels |
12% |
Nil |
| Exercise books and notebooks |
12% |
Nil |
| Eraser |
5% |
Nil |
Agricultural Sector
| Items |
Earlier Rate |
New Rate |
| Tractor tyres and parts |
18% |
5% |
| Tractors |
12% |
5% |
| Specified bio-pesticides and micro-nutrients |
12% |
5% |
| Drip irrigation system and sprinklers |
12% |
5% |
| Agriculture, Horticultural or Forestry Machines for soil preparation, cultivation, harvesting, and threshing |
12% |
5% |
Automobile Sector
| Items |
Earlier Rate |
New Rate |
| Petrol and petrol hybrid, LPG, CNG Cars (not exceeding 1200cc and 400mm) |
28% |
18% |
| Diesel and diesel hybrid cars (not exceeding 1500cc and 40mm) |
28% |
18% |
| Three-wheelers |
28% |
18% |
| Motorcycles (350cc and below) |
28% |
18% |
| Motor vehicles for transport of goods |
28% |
18% |
Electronic Appliances
| Items |
Earlier Rate |
New Rate |
| Air conditioners |
28% |
18% |
| Television above 32 inches (including LED and LCD Tvs) |
28% |
18% |
| Monitors and projectors |
28% |
18% |
| Dish washing machines |
28% |
18% |
Special 40 per cent
Pan masala, cigarette, beedi, gutka
Aerated waters, caffeinated, carbonated, alcoholic beverages
