**Central Government Announces Major GST Reforms: A Diwali Gift to Make Daily Items Cheaper**
New Delhi: In a significant move to ease the financial burden on citizens, the central government has unveiled major GST reforms aimed at providing relief to the public. Prime Minister Narendra Modi described these changes as a special Diwali gift that will make everyday items more affordable and life easier for all. However, it is important to note that some luxury and harmful products will see an increase in their prices.
Prime Minister Modi said, “These reforms are a Diwali gift for every Indian. It will reduce the tax burden, make daily items cheaper, and help small businesses. It will also strengthen the economy.”
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### What Will Become Cheaper?
The new GST reforms have reduced tax rates on a wide range of items, making them more accessible and affordable for consumers. Here is a breakdown of the key categories:
**Daily Use Items**
– Hair oil, shampoo, toothpaste, soap, toilet soap, toothbrushes, shaving cream
– Butter, ghee, cheese
– Packaged namkeen, bhujia, mixed snacks
– Baby feeding bottles, napkins, and clinical diapers (GST reduced from 18%/12% to 5%)
**Agriculture-Related Goods**
– Tractors, tractor tyres, and parts
– Biopesticides, micronutrients
– Drip irrigation systems, sprinklers
– Soil preparation and harvesting machines (GST reduced from 18%/12% to 5%)
**Healthcare**
– Removal of GST on personal health and life insurance
– Thermometers, medical-grade oxygen, glucometers, test strips
– Diagnostic kits, reagents, and corrective glasses (GST now at 5% or zero)
**Vehicles**
– Petrol, hybrid petrol, LPG, and CNG cars (within specified limits)
– Diesel and diesel hybrid cars (within specified limits)
– Three-wheelers, motorcycles up to 350 cc, goods transport vehicles (GST reduced from 28% to 18%)
**Education Materials**
– Maps, charts, globes
– Pencils, sharpeners, crayons, pastels
– Exercise books, notebooks, erasers (GST removed)
**Electronics**
– Air conditioners, TVs (including LED and LCD over 32 inches)
– Monitors, projectors, dishwashers (GST reduced from 28% to 18%)
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### What Will Become Costlier?
While everyday items are becoming cheaper, certain luxury and harmful products will incur higher taxes:
**Luxury and Harmful Products**
– Pan masala, tobacco products including zarda, gutkha, cigarettes, and unprocessed tobacco will continue to attract 28% GST plus compensation cess until states repay their loans. Afterward, these products will attract a 40% GST rate without additional duties.
**Big Cars**
– Petrol cars above 1200 cc and diesel cars above 1500 cc will see a new GST rate of 40%.
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### Extra Relief for Businesses
To further support economic growth, the government has simplified the GST registration process. Businesses, especially small businesses and MSMEs (Micro, Small, and Medium Enterprises), can now complete GST registration within 3 days. This timely measure aims to encourage entrepreneurship and streamline compliance.
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These GST reforms are designed to ease the financial load on consumers and bolster the economy, marking a festive season filled with hope and opportunity for all Indians.
https://www.freepressjournal.in/business/from-soaps-to-suvs-what-gets-cheaper-what-turns-costlier-under-new-gst-rules-heres-the-full-gst-list