GST Update: There’s good news for the public ahead of the festive season. In the latest GST Council meeting, several important decisions were made that will directly affect your budget.
While some items will get cheaper, others will become more expensive. Insurance will now cost less, but vehicles and cold drinks will see a price hike.
Farmers are also set to benefit. From bread to cheese, tax changes will impact everyday life.
The GST structure in India has undergone major changes. The GST Council, led by Finance Minister Nirmala Sitharaman, met on Wednesday night and approved several key reforms.
These changes aim to make taxes simpler and reduce the burden on essential items—just in time for the upcoming festivals.
1. When Will the New GST Rates Be Applied?
The new GST rates will be effective from September 22. However, items like cigarettes, bidis, chewing tobacco, and raw tobacco will not be affected by these changes. They will continue to be taxed at the old rates.
2. What About the e-Way Bill?
Even after the new rates take effect, any e-way bills already generated will still be valid. There’s no need to generate a new one for goods that are already in transit.
3. Will Cold Drinks Become Costlier?
Yes, cold drinks like Coca-Cola and Pepsi will now be more expensive. The GST has been increased from 28% to 40%, leading to a rise in their prices.
4. How Are Farmers Benefiting?
Farmers and consumers will both benefit. GST has been reduced on dairy products, fertilizers, bio-pesticides, and agricultural equipment.
This will help lower farming costs and also make food products cheaper during the festival season.
5. Is Insurance Getting Cheaper?
Yes. The GST on life and health insurance premiums has been removed, making both types of insurance more affordable and accessible to the public.
6. What’s the Impact on Vehicle Prices?
Large vehicles will become more expensive. Cars with petrol engines over 1200cc and diesel engines over 1500cc will now be taxed at 40% GST. This means small cars and bikes will become cheaper in comparison.
7. Why Was Tax on Bread Changed?
Earlier, plain bread was tax-free, but other types like pizza bread, paratha, and roti had different GST rates. Now, all Indian breads are exempt from GST, which will benefit consumers.
8. Why Was Tax on Fruit Juices Increased?
Earlier, fruit drinks had both GST and compensation cess. Now, the cess has been removed, but GST has been raised to 40% to keep government revenue stable.
9. Why Different Tax on Paneer and Cheese?
There’s no GST on unpackaged or unlabeled paneer, and this remains unchanged. The GST change applies only to packed and labeled paneer, to encourage and support small-scale paneer producers.
10. What About Sports Event Tickets?
For sports events (excluding IPL), if the ticket is below Rs 500, there will be no GST. But if the ticket price is above Rs 500, then 18% GST will be charged.
