GST Council Meet Highlights: Tax rates slashed from roti, paratha

GST Council meet Highlights:  GST tax rates on common use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed after the all-powerful GST Council approved a complete overhaul of the tangled goods and services tax regime. Almost all personal-use items will see rate cuts as the government looks to boost domestic spending and cushion the economic blow of the US tariffs.

Briefing reporters after a marathon day-long GST Council meeting, Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement with any state. The panel approved simplifying the goods and services tax (GST) from the current four slabs — 5, 12, 18 and 28% — to a two-rate structure — 5 and 18%. A special 40% slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The new rates for all products, except gutkha, tobacco and tobacco products and cigarettes, will be effective September 22 — the first day of Navratri, she said. While daily use food items will continue to attract nil tax rate, common use food and beverages ranging from butter and ghee to dry nuts, condensed milk, sausages and meat, sugar boiled confectionery, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles, fruit pulp or fruit juice, beverages containing milk, ice cream, pastry and biscuits, corn flakes and cereals, and sugar confectionery are likely to see a cut in tax rate to 5% from the current 18%.

Catch updates on the GST Council meet here