In the 56th meeting of the GST Council, several important decisions were made to give relief to the general public.
The Finance Minister announced that the 12% and 28% GST slabs have been removed.
Now, instead of four tax slabs, only two will remain—5% and 18%.
Essentials Made Tax-Free, Higher Tax on Luxury Items
According to the Finance Minister, many everyday items like milk, roti, pizza, bread, cheese, and other food products will now be GST-free.
In addition, items such as soap, shampoo, air conditioners, cars, life-saving medicines, and personal health and life insurance will also not be taxed.
However, a 40% GST will now apply to luxury goods and tobacco products, replacing the earlier 28% rate.
This higher tax slab will also include medium and large cars, as well as motorcycles with engines above 350cc.
New GST Rates Effective from Navratri
These revised GST rates will come into effect from the first day of Navratri, which falls on 22nd September.
