India's Next-Gen GST Reform: A Diwali Gift for All

This chart shows significant GST cuts designed to help various sectors, including daily essentials, agriculture, healthcare, education, and some electronic appliances and vehicles. The main aim is to simplify things and make life easier for people and businesses, promoting a self-reliant India.

Here's a category-wise breakdown of the proposed changes:

1. Save Big on Daily Essentials:

This section highlights a major reduction in GST for everyday items, making them much more affordable.

• Soap, Shampoo, Toothpaste, Toilet Soap, Bar, Tooth Brushes, Shaving Cream: Reduced from 18% to 5%. This is a big relief for every household's monthly budget.
• Butter, Ghee, Cheese & Dairy Spreads: Reduced from 12% to 5%. This offers another significant benefit for daily food.
• Pre-packaged Namkeens, Bhujia & Mixtures: Reduced from 12% to 5%. Snacks will now be cheaper.
• Utensils: Reduced from 12% to 5%. This is good news for household purchases.
• Feeding Bottles, Napkins for Babies & Baby Diapers: Reduced from 12% to 5%. This means significant savings for families with infants.
• Sewing Machines & Parts: Reduced from 12% to 5%. This helps small businesses and households.

2. Uplifting Farmers & Agriculture:

This section focuses on supporting the agricultural sector, crucial for the Indian economy.

• Tractor Tyres & Parts: Reduced from 18% to 5%. This lowers costs for farmers.
• Tractors: Reduced from 12% to 5%. This makes agricultural machinery more affordable.
• Specified Bio-Pesticides, Micro-Nutrients: Reduced from 12% to 5%. This cuts costs for crop protection and improvement.
• Drip Irrigation System & Sprinklers: Reduced from 12% to 5%. This encourages efficient water use in farming.
• Agricultural, Horticultural or Forestry Machines for Soil Preparation, Cultivation, Harvesting & Threshing: Reduced from 12% to 5%. Modernizing agriculture becomes cheaper.

3. Relief in Healthcare Sector:

Important medical items and services see significant GST reductions, making healthcare more affordable.

• Individual Health & Life Insurance: Reduced from 18% to Nil. This is a huge relief, making insurance more accessible.
• Thermometer: Reduced from 18% to 5%.
• Medical Grade Oxygen: Reduced from 12% to 5%. This is critical during health crises.
• All Diagnostic Kits & Reagents: Reduced from 12% to 5%.
• Glucometer & Test Strips: Reduced from 12% to 5%.
• Corrective Spectacles: Reduced from 12% to 5%.

4. Automobiles Made Affordable:

This category also sees adjustments, especially for commonly used or environmentally friendly vehicles.

• Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1500 cc & 4000mm): Reduced from 28% to 18%.
• Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000mm): Reduced from 28% to 18%.
• 2 Wheeled Vehicles: Reduced from 28% to 18%.
• Motor Cycles (350 cc & below): Reduced from 28% to 18%.
• Motor Vehicles for transport of goods: Reduced from 28% to 18%.

5. Affordable Education:

Support for educational materials makes learning more accessible.

• Maps, Charts & Globes: Reduced from 12% to Nil.
• Pencils, Sharpeners, Crayons & Pastels: Reduced from 12% to Nil.
• Exercise Books & Notebooks: Reduced from 12% to Nil.
• Eraser: Reduced from 5% to Nil.

6. Save on Electronic Appliances:

Some common electronic items also see a reduction.

• Air Conditioners: Reduced from 28% to 18%.
• Television (above 32"), (including LCD, LED TVs): Reduced from 28% to 18%.
• Monitors & Projectors: Reduced from 28% to 18%.
• Dish Washing Machines: Reduced from 28% to 18%.

Process Reforms:

The chart also highlights improvements in the GST process:

• Automatic registration within 3 working days for applicants—identified by the system based on data.
• Applicants who decide they will not pass input tax credit exceeding ₹2.5 lakh per month can opt for the scheme.
• Provisional Refunds are sanctioned by the proper officer through system-based risk criteria for:
  • Zero Rated Supplies
  • Supplies with inverted duty structure

Prime Minister's Message:

The Prime Minister's message indicates that these reforms are a gift for everyone, suggesting that Diwali timing for the announcement will bring significant tax cuts for the public. It emphasizes that everyone, including small entrepreneurs, will benefit.

This is indeed a major and positive update to the GST structure, aimed at boosting consumption, reducing financial burdens, and supporting key sectors of the economy. Businesses will need to quickly adjust their systems and pricing to reflect these new rates once they are officially put into effect.

Leave a reply