The new Goods and Services Tax (GST) system across the country has rolled out from today, 22nd September. The earlier four tax slabs have now been simplified into just two—5% and 18%. This means many everyday items will get cheaper, while a few luxury goods and harmful products will see higher taxes.
The decision was taken in the September 3 GST Council meeting, led by Finance Minister Nirmala Sitharaman. Prime Minister Narendra Modi, in his address to the nation on sunday, said this change would bring major relief to households during the festive season, calling it a “double Diwali” for the people.
What’s Getting Cheaper
- Basic foods: Milk, bread, and paneer are now completely tax-free.
- Kitchen items: Butter, ghee, oils, sugar, pasta, noodles, cheese, and meat products now have just 5% GST (instead of 12%).
- Fruits: Nuts, dates, mangoes, pineapples, guavas, avocados—all now taxed at only 5%.
- Packaged goods: Jam, jelly, mushrooms, mustard, snacks like bhujia, and even bottled water (20 liters) are cheaper with 5% GST.
- Sweets & treats: Chocolates, honey, cornflakes, cakes, pastries, soups, and ice cream have dropped from 18% to 5%.
- Beedis: Beedi leaves will have 5% GST, while beedis themselves will now attract 18% instead of 28%.
- Healthcare: Life-saving medicines, oxygen cylinders, thermometers, and other medical devices will now be available at lower prices (5% GST).
- Electronics: TV, washing machines, refrigerators, and air conditioners are cheaper, moving from 28% to 18%.
- Vehicles: Small cars, bikes under 350cc, and CNG/LPG cars now carry 18% GST, while electric vehicles are just 5%.
- Education: Stationery like pencils, notebooks, maps, and globes will now be completely tax-free.
- Clothes & shoes: Only 5% GST will apply, making them more affordable.
- Everyday items: Toothpaste, soaps, hair oil, shaving cream, bicycles, umbrellas, and bamboo furniture are down to 5%.
- Services: Spa, gym, yoga centers, and health clubs will now charge only 5% GST.
- Farming & household: Fertilizers, sewing machines, tractors, and even cement will be cheaper.
- Insurance: Life and health insurance premiums are now fully exempt from GST.
What’s Getting Costlier
- Luxury goods: Premium cars, high-end bikes, racing cars, and private jets will face a steep 40% GST.
- Tobacco & drinks: Cigarettes, cigars, pan masala, sugary and fizzy drinks will now cost more, with taxes rising to 40%.
- Coal: The tax on coal has been increased from 5% to 18%.