Major GST rate cuts announced
Union Finance Minister Nirmala Sitharaman announced significant reductions in GST rates, saying the move will provide direct relief to the common man and middle class.
“In common man and middle-class items, there is a complete reduction,” Sitharaman said while briefing the media after the 56th GST Council meeting.
Daily-use Items Now at 5% GST
The following items will now attract a 5% GST: hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles.
Zero GST on essentials
The GST rate has been reduced from 5% to zero on: Ultra-high temperature milk, chena and paneer and all Indian breads — roti, paratha, etc.
Packaged food items at 5%
GST has been cut from 12% or 18% to 5% on: Namkeen, bujjiya, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter and ghee.
Appliances and Automobiles at 18%
GST has been slashed from 28% to 18% on: Air conditioning machines, all televisions, including those above 32 inches, dishwashing machines, small cars and motorcycles (up to 350 cc)