|
Union Minister Dharmendra Pradhan lauded Prime Minister Narendra Modi for GST reforms, saying that this will "accelerate the pace of the economy."
"I thank the Prime Minister that under his guidance, the GST Council has unanimously implemented new GST reforms. I express gratitude on behalf of India's industry, its middle class, and the education sector, in particular. GST has been removed from many items, and GST on many items has been reduced to 5%. The expenditure of citizens on education will increase. The pace of the economy will accelerate," he told reporters on Thursday. The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates. 5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits. While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts. Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters. Notably, some essential services and educational items are fully exempt from GST, including individual health, family floater, and life insurance. Additionally, GST is not applicable to health and life insurance premiums, as well as education and healthcare services, such as certain services related to education and healthcare, which are also GST-exempt. (ANI)
|
