New GST rules to start: Check what’s Things getting Cheaper and Costlier

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New Delhi: Finance Minister Nirmala Sitharaman has announced big changes in GST tax. 12% and 28% tax slabs are removed. Now only 0%, 5% and 18% slabs will remain.

From Monday, many daily-use items will become cheaper, but some luxury and harmful products will become costlier.

0% GST (No Tax Items)

• Food: Milk, paneer, bread, pizza base, chapati, paratha
• Study: Pencil, notebooks, charts, lab books
• Health: 33 life-saving medicines, health insurance, life insurance

5% GST Items

• Food: Oil, butter, ghee, sugar, sweets, biscuits, chocolates, juice, coconut water
• Personal care: Soap, shampoo, toothpaste, hair oil, shaving cream
• Home use: Kitchen items, baby bottles, umbrellas, candles, sewing machines, diapers, handbags, furniture
• Farming: Tractor, farm tools, irrigation pipes, pumps
• Medical: Thermometer, glucometer, oxygen, spectacles, gloves
• Other: Hand-made paper, paintings, bricks, tiles

18% GST Items

• Electronics: AC, washing machine, LED TV, monitor, projector
• Vehicles: Small cars, autos, bikes under 350cc, ambulances, goods vehicles
• Services: Hotels under ₹7,500/day, cinema tickets below ₹100, beauty parlours
• Other: Tractor fuel, pumps.

Things Getting Cheaper

• Oil, flour, ghee, sugar, pasta, biscuits
• Pencils, notebooks, study material
• Soap, shampoo, toothpaste, kitchen items
• Medicines, health insurance
• TVs, ACs, cars, bikes, tractors, farm machines

Things Getting Costlier

• Luxury bikes (above 350cc), SUVs, luxury cars, racing cars (tax now 40%)
• Casinos, race clubs, gambling, betting (tax now 40%)
• Cigarettes, tobacco, cold drinks with caffeine or gas (tax now 40%)

Good news for common people – daily items are cheaper.Bad news for rich and smokers/gamblers luxury and harmful products are costlier.

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