By Admin 
GST 2.0: Many important decisions were taken in the GST Council meeting held on Wednesday. Slabs with 12 percent and 28 percent have been finished. Two slabs with 5 and 18 percent are left. GST has been reduced by many things that work in everyday life like soap, biscuits, coffee, butter. Health and Life Insurance Premium has also been made tax free. Along with this, 40 percent tax has also been announced on luxury and sin goods. Let’s take a look at some major changes in the eight-year-old tax regime-
When will the new rates be applicable?
The revised rates of GST will apply to goods and services from September 22, 2025. Current rates for tobacco related products will continue and new rates will be announced later.
What will be a big relief on what things?
The council has given relief from GST to many things used in everyday life such as toilet soap, shampoo, tooth brush, shaving cream, hair oil and face powder will now have 5 percent GST. Whereas earlier these 18 percent GST is charged. Talking about food and drinking things, GST has been completely eliminated on bread and penetration. Apart from these, the food items coming in the second category will also be brought under 5 percent slab. Pre-packed salty, Bhujia, mixture used to have 12 percent GST earlier. Now there will be 5 percent GST. Along with this, 5 percent GST will be charged on butter, ghee, cheese, dairy spreads instead of earlier 12 percent.
How much will GST be on medicines?
GST has been reduced from 12 percent to 5 percent at all medicines. The most important thing is that GST on 33 life saving medicines has been reduced from 12 percent to zero. Also, GST has been reduced from 5 percent to the three life saving medicines used in the treatment of many other serious diseases like cancer. Not only this, GST has also been reduced from 12 percent to 5 percent on many devices used in medical, surgical, vetteri and physical or chemical analysis.
How much GST will be taken on two and three-wheelers?
Now 18 percent GST will have to be given on the purchase of petrol, petrol hybrid cars, LPG, LNG cars. However, for this, the condition has been laid that petrol and CNG -powered cars should not exceed 1200cc. Their length should also not be more than 4 meters. Diesel and diesel hybrid cars will also have 18 percent GST instead of 28 percent. However, the condition has been laid that their engine capacity should not exceed 1500cc and the length is up to 4 meters. Two-wheelers will also be imposed on 28 percent, but 18 percent GST. This will benefit models with 350cc or less engine capacity.
How much will GST be on the premium of life and health insurance?
GST has been completely eliminated on the premium of life and health insurance. Earlier 18 percent GST was charged on this. It has been demanded for a long time. With this, the benefit of insurance coverage is now expected to get more and more people.
Also read:
GST 2.0 tremendous impact … shares of auto companies run away from rocket; The feeling climbed so much in one stroke