GST council announces new slabs to be rolled out from September 22

Days after Prime Minister Narendra Modi announced next-generation GST reforms, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, on Wednesday approved GST rate overhaul, abolishing the 12 per cent and 28 per cent slabs. The announcement was made by Sitharaman, who said 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... Labour-intensive industries have been given good support. Farmers and the agriculture sector, as well as the health sector, will benefit. Key drivers of the economy will be given prominence," she said at a press conference on Wednesday night. 

What gets cheaper?

. Milk products: While Ultra-High Temperature (UHT) milk will be tax-free now, tax on condensed milk, ghee, butter, paneer and cheese has been reduced from 12-18 per cent to 5 per cent. 

. GST on items such as namkeens, bhujia, chabena has also been decreased to 5 per cent from 18 per cent.

. Dry fruits such as almonds, pistachios, hazelnuts, cashews, and dates will now attract GST of 5 per cent instead of 12 per cent. 

. Refined sugar, sugar syrups, and confectionery items will also attract GST of 5 per cent now. 

. Vegetable oils, animal fats, edible spreads, sausages, meat preparations, fish products, and malt extract-based packaged foods will also attract GST of 5 per cent. 

. GST on staple foods - malt, starches, pasta, cornflakes, biscuits, and even chocolates and cocoa products - has been reduced to 5 per cent from 12-18 per cent. 

. Water not containing artificial sugar and



sweeteners will attract GST of 5 per cent instead of 18 per cent.

. GST on fertilisers and select agricultural inputs has also been decreased to 5 per cent.

. GST on life-saving drugs, health-related products will now be 5 per cent or nil.

. On educational services and items, GST will now be 5 per cent or nil. 

. Hair oil, shampoo, Dental floss, toothpaste will now attract GST of 5 per cent instead of 18 per cent.

. GST on footwears and textiles has also been reduced to 5 per cent.

. On select electrical appliances, GST has been reduced to 18 per cent.

. GST on petrol and petrol hybrid, LPG, CNG cars (not exceeding 1200 cc and 4000 mm), and on diesel and diesel hybrid cars (not exceeding 1500 cc and 4000 mm) will be 18 per cent instead of 28 per cent.

. On renewable energy devices, GST has been reduced to 5 per cent. 

. Sports goods and toys will now attract 5 per cent GST.

. Leather, handicrafts and wood products will attract 5 per cent GST. 

. GST on air conditioners will also be 18 per cent instead of 28 per cent.

. Dishwashing machines will also attract 18 per cent GST instead of 28 per cent.  

What gets costlier?

. Tax on goods containing added sugar and sweeteners has been increased from 28 per cent to 40 per cent. 

. Items like cigarettes, pan masala, tobacco, zarda, gutkha will remain the existing GST slab rates. 

. Luxury goods will be in the 40 per cent tax slabs. 

. Coal will now attract 18 per cent tax instead of 5 per cent. 

. GST on TV sets will be 18 per cent.

. Big cars and bikes above 350 cc will attract GST of 40 per cent.