Big relief for consumers: GST Slashed on everyday goods, insurance, and medicines

In the meeting of the GST Council on Wednesday, major announcements have been made, giving relief to the common people, in which there has been a huge reduction in taxes on everyday goods. Many items including private health insurance premium have also been made GST free. Late night Finance Minister Nirmala Sitharaman released a full list of cheap goods, announcing two GST slabs and 18 percent. The new rates will come into effect from September 22, 2025.

No GST will have to be paid on these

• GST exemption on all personal life insurance policies, whether it is term life, ULIP, or endowment policies.
• Ultra-high temperature milk, chenna and cheese
• All Indian breads. That is, GST will become zero on all bread or paratha, or whatever it is.
• GST on 33 life saving medicines and medicines has been reduced from 12% to zero.

These items will become cheaper

• GST on cement has been reduced from 28% to 18%.
• Namkeen, Bhujia, sauce, pasta, instant noodles, chocolate, coffee, protected meat, cornflakes, butter, ghee, are all within 5%.
• GST on small cars and motorcycles with a capacity of 350 cc or less has been reduced from 28% to 18%.
• GST on buses, trucks and ambulances has been reduced from 28% to 18%.
• An equal rate of 18% has been applied to all auto parts. Three three% have been reduced from 28% to 18% on vehicles.

Ambulance

The GST on factory-fitted ambulance has now been reduced from 28% to 18%. This will provide cheap ambulances to hospitals and health services.

Small diesel vehicle

The engine capacity has now been reduced from 28% to 18% on diesel cars with a length up to 1500 cc and length less than 4000 mm.

Three-wheeler vehicle

Three -wheeled vehicles will now come in 18% GST slab, earlier 28% tax was levied on them.

Air conditioner

The tax on domestic and other AC machines has now come down from 28% to 18%. This is expected to reduce AC prices.

Dishwasher

GST on domestic and other dishwashing machines will now take 18%. Earlier it was 28%.

Television, monitor, projector, set-top box

GST on all these electronic devices has also been reduced from 28% to 18%, which will make these products more cheap for consumers.

Renewable energy devices and parts used for their manufacture such as biogas plant, windmills, wind power -powered electrical generators, waste from waste power plants, equipment, P.V. SAIL, whether they are combined in modules or made in a panel, GST has been reduced from 12 to 5% on solar cookers, solar water heaters and systems etc.