In a significant decision taken during the GST Council meeting held on September 3, Union Finance Minister Nirmala Sitharaman announced a major restructuring of the GST slab system. Going forward, only two main GST slabs – 5% and 18% – will apply, as the 12% and 28% slabs have been eliminated. Items previously falling under those slabs will now be reclassified under the approved two-tier system.
The government has also introduced a special 40% GST slab for luxury and harmful products, such as tobacco and high-end vehicles. The new GST rates will come into effect from September 22.
Here’s what’s getting cheaper and costlier under the new GST structure:
✅ Daily Essentials That Will Become Cheaper
Personal Care Products:
- Hair oil, shampoo, toothpaste, soap, toothbrush, shaving cream
→ GST reduced from 18% to 5%
Dairy Products:
- Butter, ghee, cheese, and other dairy items
→ GST reduced from 12% to 5%
Snacks:
- Pre-packaged namkeen and savory items
→ GST reduced from 12% to 5%
Utensils:
- All basic kitchen utensils
→ GST reduced from 12% to 5%
Baby Products:
- Feeding bottles, baby diapers, and napkins
→ GST reduced from 12% to 5%
Sewing Machines:
- Sewing machines and their parts
→ GST reduced from 12% to 5%
✅ Healthcare Sector Relief
- Health and life insurance
→ GST reduced from 18% to 0% (zero-rated) - Thermometers
→ GST reduced from 18% to 5% - Medical-grade oxygen
→ GST reduced from 12% to 5% - Glucometers and testing strips
→ GST reduced from 12% to 5% - Eyeglasses
→ GST reduced from 12% to 5%
✅ Stationery Items Now Tax-Free
- Maps, charts, and globes
→ GST reduced from 12% to 0% - Pencils, sharpeners, crayons, and pastel colors
→ GST reduced from 12% to 0% - Textbooks and notebooks
→ GST reduced from 12% to 0% - Erasers
→ GST reduced from 5% to 0%
✅ Relief for Farmers
- Tractors
→ GST reduced from 12% to 5% - Tractor tires and parts
→ GST reduced from 18% to 5% - Pesticides and micronutrients
→ GST reduced from 12% to 5% - Agricultural machinery for ploughing, harvesting, and threshing
→ GST reduced from 12% to 5%
✅ Vehicles to Get Cheaper
- Petrol, LPG & CNG cars (up to 1200 CC and 4000 MM)
→ GST reduced from 28% to 18% - Diesel cars (up to 1500 CC and 4000 MM)
→ GST reduced from 28% to 18% - Three-wheelers
→ GST reduced from 28% to 18% - Motorcycles up to 350 CC
→ GST reduced from 28% to 18% - Goods transport vehicles
→ GST reduced from 28% to 18%
✅ Lower GST on Electronic Devices
- Air conditioners
→ GST reduced from 28% to 18% - Televisions larger than 32 inches
→ GST reduced from 28% to 18% - Monitors and projectors
→ GST reduced from 28% to 18% - Dishwashing machines
→ GST reduced from 28% to 18%
❌ What’s Getting Costlier?
A new 40% special GST slab has been introduced for luxury and harmful products, including:
- Luxury cars and bikes
- Tobacco products and cigarettes
- Fast food and cold drinks
These items will now attract the highest GST rate of 40%, as part of the government’s strategy to encourage healthy and sustainable consumption.
