Big Relief for Consumers: 12% & 28% Slabs Scrapped, Now Only 5% and 18% – Everyday Items to Get Cheaper!

New Delhi (The Uttam Hindu): A major development took place today as the Group of Ministers (GoM) on GST rationalization approved a key proposal to reduce the tax slabs to just 5% and 18%, replacing the existing four slabs of 5%, 12%, 18%, and 28%.

The GoM, chaired by Bihar Deputy Chief Minister Samrat Choudhary, gave its nod to the central government’s proposal, while luxury items will continue to be taxed at 40%. Members of the GoM include Uttar Pradesh Finance Minister Suresh Khanna, Rajasthan Health Minister Gajendra Singh, West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K.N. Balagopal.

Samrat Choudhary said the GoM has supported the Centre’s plan to abolish the 12% and 28% slabs, while some states raised minor objections. The proposal will now be sent to the GST Council for a final decision.

Items to Become Cheaper (12% ➝ 5%):

Dry fruits, branded namkeen, toothpaste, soaps, hair oils

Basic antibiotics, painkillers, processed foods, snacks, frozen vegetables

Condensed milk, some mobiles & computers, sewing machines, pressure cookers, geysers

Non-electric water filters, electric irons, vacuum cleaners

Readymade garments above ₹1,000, footwear between ₹500–₹1,000

Vaccines, HIV/TB diagnostic kits, bicycles, utensils

Geometry boxes, maps, globes, glazed tiles, vending machines, solar water heaters, agri-machinery, public transport vehicles.

Items to Become Cheaper (28% ➝ 18%):

Cement, beauty products, chocolates, ready-mix concrete

TV, refrigerators, washing machines, ACs, dishwashers, private jets

Protein concentrates, coffee syrups, sugar syrups

Plastic products, rubber tyres, aluminum foil, tempered glass, printers, razors, manicure kits, dental floss.

This decision, if approved by the GST Council, will directly impact millions of households, lowering the cost of everyday essentials and consumer durables.