GST cut to 2 slabs: Relief or risk?

After a marathon meeting in Delhi, chaired by Finance Minister Nirmala Sitharaman, the council has simplified GST from four slabs to just two: 5% and 18%. This new system will take effect from 22nd September.

The finance minister said the reforms are aimed at easing the burden on the common man. Everyday essentials have seen big relief, while luxury and harmful products are still going to be heavily taxed.

Zero GST is where the Life-saving drugs, cancer medicines, rare disease treatments, life and health insurance, school items, and food items are all at 0%.

5% GST is  for Affordable essentials:
Your hair oil, shampoo, toothpaste, soap, butter, ghee, cheese, namkeens, medical kits, tractors, drip irrigation systems, all under 5%.

18% GST comes for the Standard rate for consumer goods
This covers most vehicles like petrol/diesel cars, bikes under 350cc, air conditioners, washing machines, TVs above 32 inches, projectors, and transport vehicles.

40% GST is for the sin and luxury bracket
This one’s heavy pan masala, cigarettes, caffeinated drinks, high-end bikes above 350cc, personal aircraft, yachts, pistols, and yes, gambling, casinos, and online gaming, all under 40%.

While most states welcomed this, West Bengal’s finance minister warned of a ₹4.77 lakh crore revenue loss because of the slab reduction.