GST Council Meet Highlights: Tax rates slashed from roti, paratha to TVs as Council approves overhaul of rates
Home Economy News New GST rates Highlights: Mukesh Ambani welcomes India’s second-generation GST reforms
New GST rates Highlights: The GST Council has slashed tax rates on a wide range of household-use products, including hair oil, corn flakes, televisions, and personal life and health insurance policies, in a landmark reform to simplify the indirect tax system. The move reduces the current four-slab structure of 5%, 12%, 18%, and 28% to just two rates — 5% and 18% — while maintaining a special 40% rate for high-end cars, tobacco, and cigarettes.
New GST rates Highlights: In a sweeping reform, the GST Council approved a major overhaul of the goods and services tax regime, cutting rates on a wide range of common-use items — from hair oil and corn flakes to TVs and personal health and life insurance policies.
The move, aimed at boosting domestic consumption and cushioning the impact of US tariffs, will see the current four-tier structure of 5%, 12%, 18% and 28% replaced with two primary slabs of 5% and 18%.
Finance Minister Nirmala Sitharaman said all decisions were taken unanimously with states in agreement.
The new rates, effective September 22, will coincide with the start of Navratri. Daily essentials will continue under the nil tax bracket, while food and beverage items such as butter, ghee, dry fruits, biscuits, ice cream, namkeen, and corn flakes will now attract a lower 5% rate instead of 18%. High-end cars, tobacco and cigarettes will remain under a special 40% slab.
Catch updates on the GST changes here
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