New GST rates take effect from first day of Navratri, promise big savings for consumers

New Delhi (The Uttam Hindu): New Goods and Services Tax (GST) rates are set to come into effect on Monday, the day before Navratri. This will significantly reduce the prices of a wide range of food items, including televisions, ATMs, refrigerators, and vehicles, making them more affordable than before.

Under the new GST framework, the number of tax slabs will be reduced from four – 5 percent, 12 percent, 18 percent, and 28 percent – ​​to two – 5 percent and 18 percent. The government has also reduced taxes to zero on several items that previously attracted 5, 12, or 18 percent taxes. Luxury and sin goods will be taxed at 40 percent.

Under the GST reform, from September 22, the GST rate on Ultra-High Temperature (UHT) milk, paneer, chenna (pre-packaged and labelled), pizza bread, khakhra, chapati or roti, paratha, kulcha and other breads, which were earlier attracting 5 per cent GST, will be reduced to zero.

Additionally, the tax on medical-grade oxygen and stationery items (sharpeners, copies, notebooks, pencils, and other products) will be reduced from 12 percent to zero. Taxes on personal health and life insurance have also been reduced from 18 percent.

Additionally, the government has reduced the GST on air conditioners and refrigerators from 28 percent to 18 percent. Taxes on vehicles have also been cut. The GST on bikes 350 cc and below has now been reduced to 18 percent, down from 28 percent previously.

Meanwhile, the tax on petrol vehicles under 1200 cc and 4 meters, and diesel vehicles under 1500 cc and 4 meters has been reduced to 18 percent. Vehicles above this segment and capacity will now be taxed at 40 percent, down from around 50 percent previously.

The government has also appealed to the industries to transfer the benefit of GST reduction to the customers.

Nearly all major companies in the automobile sector have announced that they will pass on the benefits of the GST reduction to customers by reducing the prices of their products. Electronics companies like Voltas, Daikin, Godrej Appliances, Panasonic, and Haier have reduced the prices of ACs and TVs.

Secondly, Amul and Mother Dairy have also announced to give the benefit of GST reduction to the customers and have decided to reduce the prices of milk, ice cream and frozen food.

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