Finance Minister Nirmala Sitharaman addressed the media in a rare 10 pm press conference on Wednesday after the GST Council approved a slew of major reforms in its 56th meeting.
The announcements came as the Centre officially launched the “next-gen” GST reforms, as promised by PM Narendra Modi from the ramparts of Red Fort in the national capital on Independence Day this year. Â
Add Zee Business as a Preferred Source
All states extended full and wholehearted support
All members were present in today’s meeting
Everyone worked together on the agenda of rate rationalisation
Along with this, steps for trade facilitation were also taken
Trade facilitation and related reforms are also included
Duties have been reduced on all everyday items of the common man
All types of items have come under the 5 per cent slab
Duties on all kinds of bread, paneer and processed milk have been removed
All types of TVs are now in the 18 per cent slab
Agricultural goods have been moved from the 12 per cent to the 5 per cent slab
Duties have been reduced on all items used by farmers
For the middle class, a home is a dream and for that cement has been reduced from 28 per cent to 18 per cent
Duties have been reduced on cancer and rare drugs
The automotive sector has been brought down from 28 per cent to 18 per cent
Duties have been reduced on buses, trucks, ambulances, three-wheelers and auto parts
By correcting the inverted duty structure, duties have been reduced on fertilizers, chemicals and more
A special 40 per cent rate category
This will include sin and ultra-luxury goods
Changes in GST on insurance; no duty on individual life, health and reinsurance
All life, term life, ULIP and endowment have been kept under GST exemption
Duty removed on floater policies and policies for senior citizens
All these new rates will come into effect from September 22
The existing duty on electric vehicles (EVs) will continue
EVs will remain in the 5 per cent slab
After loan repayments and other factors, all these products will automatically move into the 40 per cent category
Shoes priced under Rs 2,500 will have a 5 per cent duty
No separate definition is being fixed for cars
There will be no cess beyond the 40 per cent category, which is the maximum rate
Any cess beyond 40 per cent will not be applied
This is a very significant relief
Increased relief for pan masala, tobacco, and expensive cars
For petrol and LPG cars above 1200 cc
For diesel cars above 1500 cc, the maximum rate will remain 40 per cent
Tariff impacts have had no effect on the GST reforms
These reforms were previously discussed
No discussion took place on petrol, diesel, LPG, etc.
It is clarified that no cess will be levied on items in the 40 per cent category
Vehicles held by dealers before the 22nd will be classified in the applicable category
No discussion took place on drones
The special 40 per cent category items were thoughtfully identified
Implementation and transition-related matters will be notified with timelines and clarifications
Â
