The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22.
The decision was taken after a marathon day-long GST Council meeting held in Delhi.
Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement from any state.
“We’ve reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess,” finance minister Nirmala Sitharaman announced.
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“These reforms have been carried out with a focus on the common man. Every tax on the common man’s daily use items has gone through a rigorous review and in most cases the rates have come down drastically,” she added.
West Bengal minister Chandrima Bhattacharya said that the new GST, which will become effective from September 22, will lead to an estimated revenue loss of 477 billion rupees.
The panel approved simplifying the GST from the current four slabs – 5, 12, 18 and 28 per cent to a two-rate structure – 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.
Full list of items that have received a rate cut:
GST rates: Items under 0%
– 33 Life-saving drugs and medicines, Cancer medicines, Medication for rare diseases,
-Individual life insurance, Health policies
-Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Notebooks, Erasers
-Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti
GST rates: Items under 5%
-Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream
-Butter, Ghee, Cheese & dairy spreads, Namkeens, Utensils
-Feeding bottles, napkins for babies and clinical diapers
-Sewing machines and parts
-Thermometer, Medical grade oxygen, All diagnostic kits and reagents, Glucometer and test strip
-Corrective spectacles
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-Tractor tyres, parts, tractors
-Specified bio-pesticides, Micro-Nutrients
-Drip irrigation system and sprinklers
-Agricultural, horticultural or forestry machines for soil preparation
GST rates: Items under 18%
-Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm)
-Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm)
-3 Wheeled Vehicles
-Motorcycles (350 cc & below)
-Motor Vehicles for the transport of goods
-Air Conditioners
-Televisions (above 32″) including LED & LCD TVs
-Monitors & Projectors
-Dish Washing Machines
-Road tractors of engine capacity more than 1800 cc
GST rates: Items in 40%
– Pan masala, Cigarettes, Gutka, Chewing Tobacco, Bidis
– Aerated waters containing added sugar or flavour, Caffeinated beverages, Non-alcoholic beverages
-Smoking pipes
– Motorcycles exceeding 350 cc
-Aircraft for personal use
-Yachts
-Revolvers and pistols
-Betting, casinos, gambling, horse racing, lottery and online money gaming