Eat as much paratha as you want. From 18, there will be zero percent tax.

GST Council Meeting: Due to the changes in GST, many things will become cheaper, while some things will become tax-free. Milk, cheese, and paratha are also included in this list.

 

 

Due to the changes in GST, many things have become cheaper, which will directly impact the common people.

 

 

The reform of Goods and Services Tax (GST) will have a direct impact on the common people. The central government has also taken special care of farmers and small traders. Finance Minister Nirmala Sitharaman said on Wednesday (September 3) that there are some things which have been made tax free. Now there will be only two slabs in GST, the first 5 percent and the second 18 percent. The new GST will come into effect from September 22.

 

There are many everyday items including milk, roti, paratha and paneer which have been kept out of the scope of tax. So now your thali is going to become cheaper. Actually, the government is trying to promote domestic spending and reduce the economic impact of US tariffs. This is a step taken in the same direction.

What will be included in the 40 percent slab

The Council approved keeping GST in only two slabs (5 and 18 percent) instead of the existing four slabs (5, 12, 18 and 28 percent). A special slab of 40 percent has been proposed on some selected items like expensive cars, tobacco and cigarettes. Sitharaman said that the new rates for all products except tobacco products like pan masala, gutkha, cigarettes, zarda and bidis will come into effect from September 22.

what became cheaper

Food items of daily use will remain out of the scope of tax. The tax rate on milk, chenna, paneer, pizza bread, khakhra, plain chapati or roti has been reduced from 5% to zero. Till now, 18% tax was levied on paratha, but now zero GST will be levied on it as well. Tax rate on food and beverages of common use, from butter and ghee to dry fruits, condensed milk, cheese, figs, dates, avocado, citrus fruits, sausages and meat, confectionery made of sugar, jam and fruit jelly, coconut water, namkeen, drinking water packed in 20-litre bottles, fruit juice, milk, ice cream, pastries and biscuits, corn flakes and cereal-based beverages and sweets made of sugar will be reduced from the current 12% or 18% to 5%.

The government also gave great news to the students

Zero tax will be levied on erasers, maps, pencils, sharpeners and notebooks instead of five percent.  Tax rates on shampoo, talcum powder, toothpaste, toothbrush, face powder, soap and hair oil have been reduced from 18 percent to five percent.

 

There will be no tax on health insurance premium

Sitharaman said that the GST Council has decided to remove GST on premium payment of personal life insurance and health insurance policies. This will make it cheaper for people to buy insurance policies. The GST Council has reduced the tax rate on cement from 28 percent to 18 percent. With this, the tax rate on petrol, LPG and CNG vehicles with less than 1,200 cc engine and less than 4,000 mm in length and diesel vehicles with 1,500 cc and up to 4,000 mm in length will be reduced from the current 28 percent to 18 percent.

Bikes, ACs and TVs will also be cheaper

Finance Minister Sitharaman said that tax on motorcycles up to 350 cc and consumer electronic products like air conditioners, dishwashers and TVs has also been reduced from 28 percent to 18 percent. All vehicles over 1,200 cc and over 4,000 mm long, motorcycles with more than 350 cc capacity and aircraft and racing cars for personal use will be taxed at 40 percent. Soft drinks with added sugar will be taxed at 40 percent. At the same time, electric vehicles will continue to be taxed at 5 percent as before. 

 

Sitharaman said that the current 28 percent tax and compensation cess will remain applicable on tobacco, gutkha, tobacco products and cigarettes until the loans taken to compensate for the revenue loss to the states are fully repaid. 40 percent tax will also be imposed on race clubs, lease or rental services and casinos / gambling / horse racing / lottery / online money gaming.