The reform of Goods and Service Tax (GST) will directly affect the common people. The central government has also taken special care of farmers and small traders. Finance Minister Nirmala Sitharaman said on Wednesday (September 3) that there are some things that have been made tax free. GST will now have two slabs, first 5 percent and second 18 percent. The new GST will be implemented from 22 September.
There are many everyday such things including milk, roti, paratha and cheese which have been kept out of the scope of tax. So now your plate is going to be cheap. Actually, the government is trying to promote domestic expenses and reduce the economic impact of US fee. This is a step taken in the same direction.
What will be included in the 40 percent slab
The council approved the GST to keep only two slabs (5 and 18 percent) instead of the existing four slabs (5, 12, 18 and 28 percent). A special slab of 40 percent has been proposed on selected items like expensive cars, tobacco and cigarettes. Sitharaman said that the new rates for all the products except tobacco products and bidis like Pan Masala, Gutkha, Cigarettes, Zarda will be effective from September 22.
What happened cheap
The goods that eat daily will be outside the scope of tax. The rate of tax on milk, chhena, cheese, pizza bread, khakhara, plain chapatti or bread has been reduced from five percent to zero. Till now, 18 percent tax was levied on the paratha, but now it will also be charged zero GST. Food and beverages of common use, from butter and ghee to dried fruits, condensed milk, cheese, figs, dates, avocado, sour fruits, sausage and meat, sugar, sugar and fruit jelly, coconut water, salty, 20 liter bottle pack, packed drinking water, fruit juice, milk, milk and grains, packets, packets and grains, corn flex and grain The tax rate on sweets made from substance and sugar will be reduced from 12 percent or 18 percent to five percent.
Government also gave great news to students
Rubber, map, pencil, sharpener and notebook will be replaced by zero tax instead of five percent. Tax rates on shampoo, talcum powder, toothpaste, toothbrush, face powder, soap and hair oil have been reduced from 18 percent to five percent.
Health insurance premium will not be taxed
Sitharaman said that the GST Council has decided to remove GST on premium payment of personal life insurance and health insurance policy. This will make it cheaper for people to take insurance policy. The GST Council has reduced the tax rate on cement from 28 percent to 18 percent. With this, the tax rate on petrol, LPG and CNG vehicles with less than 1,200 cc engine and less than 4,000 mm length and diesel vehicles with length up to 1,500 cc and 4,000 mm will be reduced from the current 28 percent to 18 percent.
Bikes, AC and TV will also be cheap
Finance Minister Sitharaman said that the tax on 350 cc motorcycles and air conditioners, dishes and TVs has also been reduced from 28 percent to 18 percent. All trains more than 1,200 cc and more than 4,000 mm long, motorcycles with more than 350 cc and privately used aircraft and racing cars will be taxed at 40 percent. Cold beverages with additional sugar will be taxed at 40 percent. At the same time, electric vehicles will continue to be taxed as before.
Sitharaman said that the current 28 percent tax and compensation cess will be applicable on tobacco, gutkha, tobacco products and cigarettes until the entire payment of revenue is paid for revenue loss to the states. 40 percent tax will also be levied on race club, lease or rental services and casino/ gambling/ climbing/ lottery/ online money gaming.
Input – PTI