GST Revisions: Detailing Changes in Tax Slabs, Implementation Dates, and Items Experiencing Price Reduction - A Comprehensive Overview in Ten Key Points
The GST Council, chaired by Finance Minister Nirmala Sitharaman, announced changes to the Goods and Services Tax (GST) rates on several items during a press conference held on August 20, 2021.
One of the key changes involves an increase in the GST rate on footwear and apparel priced above ₹2,500, as these items are likely to be moved up from a 12% GST rate to 18%.
On the other hand, common use food and beverages, such as butter, ghee, dry nuts, condensed milk, sausages, meat, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles, fruit pulp or fruit juice, beverages containing milk, ice cream, pastry and biscuits, corn flakes and cereals, will see a decrease in their GST rate from 18% to 5%.
Certain 'sin' goods like tobacco will continue to attract a 40% GST rate. Items like paneer, ultra high temperature milk, and all Indian breads will attract no GST now instead of a 5% GST.
The GST rate on various items such as station wagons, racing cars, yachts, aircraft for personal use, and smoking pipes has been increased to 40%. The GST Council also imposed a 40% GST rate on all petrol and diesel automobiles above 1,200 cc and 1,500 cc, and longer than 4,000 mm, as well as motorcycles above 350 cc, yachts, aircraft for personal use, station wagons, racing cars, and smoking pipes.
However, there is some good news for consumers, as property rates are expected to become cheaper. Cement rates have been reduced from 28% to 18%. The GST rate on Petrol, LPG, and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length has also been reduced from 28% to 18%. The taxes were also cut on motorcycles of up to 350 cc, consumer electronics like ACs, dishwashers, and TVs to 18% from 28%.
The GST rate on shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap, and hair oil has been reduced from 18% to 5%.
These changes are part of the decisions made at the 56th GST Council meeting, aiming to create a more balanced and equitable tax structure for the country.
