In view of the changes in GST, many fast moving consumer goods (FMCG) companies have already announced price cuts.
GST की नई दरें कल से होंगी लागू, 375 चीजें होंगी सस्ती
Goods and Services Tax (GST) reductions are set to take effect tomorrow, Monday. Nearly 375 items, ranging from kitchenware to electronics, medicines and appliances, to vehicles, are expected to become cheaper.
GST Council announces reductions
The GST Council has decided to reduce GST rates from September 22nd (the first day of Navratri), providing relief to consumers.
Commonly used items like ghee, cheese, butter, snacks, ketchup, jam, dried fruits, coffee, and ice cream, as well as high-end products like TVs, air conditioners (ACs), and washing machines, will also become cheaper.
FMCG companies announce price reductions
Many fast-moving consumer goods (FMCG) companies have already announced price reductions in response to the GST changes.
Relief on Medicines and Medical Devices
The GST rate on most medicines and formulations, as well as medical devices like glucometers and diagnostic kits, has been reduced to five percent, making medicines affordable for the common man.
GST on cement has been reduced from 28 percent to 18 percent, which will also benefit home builders.
The government has already directed pharmacies to adjust their maximum retail prices (MRPs) or sell medicines at lower prices to reflect the benefits of the GST reduction.
Vehicle buyers will benefit
Vehicle buyers will benefit the most from the GST rate reduction, as the tax rates on small and large cars have been reduced to 18 percent and 28 percent, respectively. Many car companies have already announced price reductions.
GST changes on services
Regarding services, the GST on beauty and fitness services, such as health clubs, salons, barbershops, fitness centers, yoga, etc., has been reduced from 18 percent with input tax credit (ITC) to 5 percent without tax credit.
Impact on Everyday Items
Everyday items like hair oil, soap, shampoo, toothbrushes, and toothpaste may become cheaper, as the tax rate on them has been reduced from 12% to 5%, respectively.
Prices of other everyday items like talcum powder, face powder, shaving cream, and aftershave lotion may also decrease, as the GST rate on these items has been reduced from 18% to 5%.
What’s in the new GST slabs?
From September 22nd, there will be two GST slabs. Most goods and services will be taxed at 5% and 18%. Luxury goods will be taxed at 40%. Tobacco and related products will be taxed at 28% plus a cess.
Currently, there are four GST slabs: 5%, 12%, 18%, and 28%. Additionally, luxury goods and harmful goods are subject to an additional cess.
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