GST Bonanza: Tax rates slashed from roti/paratha to TVs as GST Council approves overhaul of rates
GST
Dated:- 3-9-2025
PTI
New Delhi, Sep 3 (PTI) Common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
The GST Council approved limiting slabs to 5 per cent and 18 per cent effective from September 22, the first day of Navaratri.
Almost all personal-use items will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the US tariffs.
Briefing rep
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emperature milk, chena or paneer, pizza bread, khakra, plain chapati or roti.
Nil will also be the tax on paratha (currently charged at 18 per cent). Common use food and beverages ranging from butter and ghee to dry nuts, condensed milk, cheese, figs, dates, avocados, citrus fruits, sausages and meat, sugar boiled confectionery, 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, and sugar confectionery are likely to see a cut in tax rate to 5 per cent from current 12 per cent or 18 per cent.
Erasers, maps, pencil sharpeners and exercise books will be charged at nil from 5 per cent.
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up to 350 cc, consumer electronics like ACs, dishwashers, and TVs too would be taxed at a lower GST of 18 per cent as against 28 per cent currently.
All automobiles above 1,200 cc and longer than 4,000 mm as well as motorcycles above 350 cc, yachts and aircraft for personal use, and racing cars will be charged with a 40 per cent levy. Aerated drinks containing added sugar will be taxed at 40 per cent.
EVs will continue to be charged at 5 per cent.
The financial implication of the rate rationalisation would be Rs 48,000 crore and this would be fiscally sustainable, Revenue Secretary Arvind Shrivastava told reporters here.
The decision by the GST Council would bring down the overall premium as the tax component has significantly come
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