Summary: GST slabs will be reduced from soap to car, two will be cheap
Taking a big decision, the GST Council has reduced four tax slabs to just two – 5% and 18%. This will make everyday items cheap.
New GST Rates: Government of Goods and Services, giving great relief to general public, small traders and industries Tax K 4 applied so far GST The slab has been reduced to only two slabs – 5% and 18%. After the new slab is implemented, many everyday important things will now become cheaper than before. Along with this, small cars have also been made cheap. These new slabs of GST will be implemented in the month of September.
What will be cheap?
- Soaps, shampoos, small home appliances, ACs and cars will now come at a low tax rate.
- Many foods including milk, bread, paratha, chhena have been completely free.
- Individual health and life insurance will no longer be taxed.
- 33 life saving medicines and rare diseases have also been tax-free.
Luxury and harmful products will be expensive
While things of common need have been cheaper, the government has increased tax on luxury items and tobacco products. Earlier, these used to levy 28% GST, which has now been increased to 40%. This slab includes large cars, motorcycles with engine more than 350cc and tobacco products.
Relief in hotel booking and services
- GST has been reduced from 12% to 5% on booking of hotel rooms up to Rs 7500.
- Tax on services like gym, salon, yoga center and barber shop has been reduced from 18% to 5%.
IPL tickets and casino entry will be expensive
While tax on common services and goods has been reduced, tax has been increased on entertainment and luxury activities. GST has been increased from 28% to 40% on sports events like Casino, Race Club and IPL.
Since when will the new rules be implemented
Finance Minister Sitharaman said that these new changes will be implemented from the first day of Navratri, 22 September.
Journey of GST
- GST came into force on 1 July 2017. Its purpose was to include various indirect taxes like VAT, service tax, purchase tax and excise duty in the same tax system.
- Along with this, 17 different taxes and 13 cess of the central and state governments were abolished.
- The first GST had four slabs – 5%, 12%, 18% and 28%.
- Now it has been reduced to only two slabs (5% and 18%).
General people will get these benefits
- Everyday things and food items will be cheaper.
- Those taking health and life insurance will get great relief.
- Small traders and MSME sector will help make business easier.
- From the common man to the middle class, the burden will decrease on everyone’s pockets.
GST 2.0 has been prepared keeping in mind both relief and control over luxury and harmful products. This time is perfect for car buyers. While the common man will get everyday things cheaper, the government will help in making the tax structure simple and effective.
