India is planning to cut GST by at least 10 percentage points on nearly 175 items, but there are a few revisions that the common man would look forward to, in particular.
The 58th GST Council meeting, helmed by Union Finance Minister Nirmala Sitharaman, has started in New Delhi. They will, over the course of today and tomorrow, take decisions on what gets cheaper and what may not.
A two-slab structure is being proposed—5% for essential goods and 18% for non-essentials— from four slabs of 5%, 12%, 18% and 28% at present. An additional slab of 40% is likely for so-called “sin goods” like tobacco and cars priced ₹50 lakh and above.
Here’s a list of items most likely to see a GST rate cut:
- Personal care products: toothpaste, shampoo, soaps, talcum
- Dairy products: butter, cheese, buttermilk, paneer, etc.
- Ready-to-eat foods: jams, pickles, snacks, chutney, etc.
- Consumer electronics: ACs, TVs, refrigerators, washing machines
- Personal vehicles: small cars, hybrid cars, motorcycles, scooters
- Most food and textile items to come under 5% GST
- Life and health insurance proposed for zero percent GST
- Cement, and other building material
Broadly, nearly all food and textile items will come under the 5% slab, in what can be seen as a boost to the likes of Hindustan Unilever Ltd., Godrej Consumer Ltd. and Nestle India Ltd.
{{/usCountry}}Broadly, nearly all food and textile items will come under the 5% slab, in what can be seen as a boost to the likes of Hindustan Unilever Ltd., Godrej Consumer Ltd. and Nestle India Ltd.
{{/usCountry}}What’s more interesting is the 18% slab, which will now include consumer electronics such as TVs, ACs, refrigerators and washing machines. These so-called white goods attracted 28% so far. Even the GST on cement will reduce to 18% from 28% at present.
The GST Council may also decide to increase the tax on ₹20-40 lakh electric cars to 18% from 5% at present, according to a Reuters report. An even higher tax is proposed for luxury electric cars by the likes of Tesla Inc. and BYD Co.