GST 2.0: The GST Council on Wednesday approved some major changes in the country’s tax system. Under this, the slab of 12 percent and 28 percent has been removed and two slabs with 5 percent and 18 percent have been kept. The new rates will be implemented from September 22. Most of the things that used to be 12 percent or 28 percent GST earlier, will now come in the category of low tax slab. That is, they will become more economical than before. At the same time, it has also been announced to collect 40 percent tax on health and some luxury items. Let us know in this sequence that the purchase of what is still beneficial and it is good to wait till 22 September to buy.

Wait a little bit for shopping for these things

Electronic appliances

GST has been reduced from 28 percent to 18 percent on 32 -inch television, monitor, projector and dish washing machines like air conditioner, LED and LCD TVs. Due to this, all these things will become cheaper.

Cultivated things related to farming

The fertilizer will now be levied 5 percent tax instead of 12-18 percent. GST is also being reduced from 18 percent to 5 percent on tractor tires and parts. Even on the purchase of tractors, now 5 percent GST will be replaced instead of 12 percent. Similarly, on bio -pesticides, micro nutrients, drip irrigation systems and sprinkler, machines used for farming, harvesting and threshing, GST will also be reduced from 12 percent to 5 percent. With this, the purchase of these things will also cost less than before.

These things related to health will also reduce

On the premium of thermometer and health and life insurance policy, GST is being reduced from 18 percent to 5 percent. Medical grade oxygen, diagnostic kits and regulations, glucometer, test strips and correct glasses will now have 5 percent GST instead of 12 percent.

Education will also be economical

Map, chart, globe, pencil, sharpener, crayon, pastel, books and notebooks, rubber things were earlier taxed at 12 percent tax, but now all these will be imposed zero tax.

Automobile will also be cheaper

Petrol and petrol hybrid cars, LPG, CNG cars (which do not exceed 1200 cc and 400 mm) have also been announced to reduce GST from 28 % to 18 %.

Their prices will also be low

Renewable energy -related devices, construction materials, play items, toys, leather products, wood items and handicrafts will also be reduced from 12 percent to 5 percent GST slab.

These things became expensive

Cigarettes, gutkha, tobacco, chewing tobacco, jarda, luxury car, super luxury goods, fast food, add sugar and carbonated drinks, personal use aircraft, casino, online gaming will soon become expensive.

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From facials to hair spa, now cheaper will have to be cheaper, government reduced GST on beauty treatment

Gst on salon services: Many major decisions were taken in the GST Council meeting held on Wednesday. Some necessary changes were made in the eight year old tax regime. The slab of 5 percent and 18 percent was approved by abolishing 12 percent and 28 percent tax slab. GST has been reduced due to many important things to be used in everyday life, which will make these goods cheap. This will give great relief to the general public of the country. In this sequence, your expenditure on the salon will also decrease.

Beauty treatment will now cost less

The GST Council has reduced GST from 18 percent to 5 percent on beauty and physical well being services, that too without input tax credit (ITC). These include salons, fitness centers, barber, yoga and health club, etc. That is, if you are booking a haircut, facial, massage or fitness session now, then you will have to pay the service charge much less. It is a part of GST reforms, which aim to make the services required and generally more economical.

Prices of personal care will reduce prices

Along with the salon, the government has also reduced GST on many things related to personal care and hygiene like soap, shampoo. Toilet soap bars will now have only 5 percent GST. This step has been taken for the purpose of reducing the monthly expenses of lower and middle income group families. GST has also been reduced to 5 percent on face powder and shampoo. Dental hygiene products like toothpaste, toothbrush and dental floss have also been brought into 5 percent slab. However, the mouthwash is out of this list.

It is expected that the GST cut will increase the demand for beauty products and cosmetics because due to reduced tax, people will feel economical than before. The GST Council has approved 5 percent and 18 percent tax slab by removing 12 percent and 28 percent slabs in a meeting held on 3 September. Apart from these, 40 percent tax has also been announced on Sin Goods and luxury items such as chewed tobacco products, beedi, etc.

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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.

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GST couricil meeting: A two -day meeting of the GST Council has started from Wednesday under the chairmanship of Union Finance Minister Nirmala Sitharaman and big announcements can be made on Thursday. It is believed that this meeting will be an important step towards implementing the GST reform announcement made by Prime Minister Narendra Modi from the ramparts of the Red Fort.

The aim of the government is to provide a big relief package to the general public, middle class, small traders and farmers before Diwali through this meeting. That is why it has been called ahead of schedule.

Possible major decisions of GST meeting

1. Two slabs instead of four slabs

Currently, four tax slabs of 5%, 12%, 18% and 28% are applicable in GST. In the meeting, they are being considered to reduce only two slabs (5% and 18%).

2. Everyday things will be cheaper

Electronic items like TV, washing machine, fridge are currently in 28% GST slab. It is proposed to shift them to 18% slab, which will make these products cheap. There are plans to bring them to 5%, which are currently in 12% slabs like ghee, betel nut, water bottle, salty, medicines and medical equipment.

3. Luxury and harmful items will be expensive

However, while the common consumer will get relief on goods, tax can increase on luxury and harmful products. Premium cars and SUVs currently have 28% GST. It is proposed that they should be brought under the scope of tax of up to 40% under the new reform. If seen in this way, the government wants to give relief to the general public on the one hand, on the other hand, it will try to make revenue balance by increasing tax on luxury conference and harmful products.

On the other hand, the finance ministers of the opposition parties ruled the GST Council met each other before the meeting to be held on Wednesday and demanded compensation from the Central Government to compensate the revenue loss due to the proposed change in the GST rates. Finance ministers of Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal participated in this meeting.

In this meeting held last week, these states discussed that if the slabs of 12% and 28% are removed and two slabs of only 5% and 18% are kept by simplifying the tax structure, then the income of the state governments could have a big impact. In such a situation, necessary steps need to be taken to protect their revenue.

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