From ACs and TVs to cars big relief after September 22 under new GST reform
New Delhi (The Uttam Hindu): The government is set to deliver a major GST gift to the general public starting September 22nd. New GST reforms are coming into effect on this date, making everything from food and beverages to daily necessities cheaper. Furthermore, major purchases like air conditioners, TVs, cars and bikes will also become cheaper than before.
In fact, the GST Council made significant changes to GST rates in a key meeting on September 3. Under the new reforms, there are now only two GST slabs: 5% and 18%. The previous 12% and 28% tax slabs have been completely eliminated.
From AC, TV and bike to car… Buy these items after September 22, you will get the gift of GST reform. : Most of the products which were in the old 12 percent tax slab have now been put in the 5 percent slab. At the same time, most of the expensive products of 28 percent have now been kept in the 18 percent tax slab. Due to this, prices are bound to fall in the electronics and automobile sector as well. Apart from this, the GST rate on some special items has been made zero i.e. 0 percent. This means that there will be no tax on these products now and they will become much cheaper than before.
Notably, along with food items, the health sector has also benefited from zero GST. Certain life-saving medications and health insurance premiums will no longer be taxed. A total of 33 medicines have been exempted from GST. Oxygen used in the medical sector previously attracted a 12 percent tax but this has now been completely eliminated.
It's worth noting that Finance Minister Nirmala Sitharaman while announcing this reform at the GST Council meeting stated that the benefits of this change would reach the general public directly. The government's aim is to reduce the tax burden on consumers and simplify the system.
These reforms are expected to bring relief to consumers especially those who spend on daily necessities or medicines. The GST rate cut may also curb inflation to some extent.