GST Overhaul: Prices Drop on Essential Goods and Services
The GST Council's decision to lower tax rates on 375 items from September 22 will reduce costs across various categories, benefiting consumers. Essential goods, medical supplies, and automobiles will become cheaper, with most items moving to lower tax slabs. This move aims to bolster the economy by increasing consumer cash flow.
- Country:
- India
The recent decision by the GST Council, which includes both central and state representatives, will lead to a significant price drop in a wide array of goods starting Monday. The council has revised tax rates on approximately 375 items, effective from September 22, aligning with the start of Navaratri, to ease financial burdens on consumers across India.
Staple goods, from food items like ghee, paneer, and dry fruits to aspirational electronics like TVs and washing machines, will now be more affordable. Pharmaceutical products, crucial for medical care, will see a reduction in prices as GST on most drugs, and medical devices have dropped to 5 per cent. This decision comes alongside a notable decrease in vehicle taxes, a major perk for automobile buyers.
Services in the wellness sector, including fitness and beauty, also benefit from lower GST rates. Essential daily products such as shampoos and soaps become cheaper with reduced taxation. With extensive reclassification of current GST slabs, 99% of goods under the 12 per cent category will shift to 5 per cent. Meanwhile, 90% of those in the 28 per cent bracket will now fall to 18 per cent, aiming to inject Rs 2 lakh crore into the economy, increasing disposable income among the populace.
(With inputs from agencies.)
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