The 12 per cent and 28 per cent slabs have been abolished. There will be 40 per cent on luxury goods.
The list of items that have been brought down from the 12 per cent and 18 per cent slabs to the 5 per cent tier include hair oil, toilet soaps, bar, shampoos, toothpastes, tableware, kitchenware item, noodles, pasta, food stuff, rotis,, bicycles, several drugs and medicines, medical equipments, agricultural equipment, among others.
A number of items have also been brought down from the 5 per cent tax slab to nil taxes. These include ultra high temperature milk, paneer and all indian breads.
List of items brought down from 18% slab to 5% include namkeens, bhujiya, sauces, pasta, instant noodles, chocolate, coffee, preserved meat, butter and ghee.
List of items that “meet middle class aspirations” which have been brought into the 18 per cent slab include air-conditioning machines, all TVs, dishwashing machines, small cars and motor cycles less than 300 cc.
Items that have been brought into the 18% slab from 28% include cement, small cars and motorcycles which are equal to or below 300 ccs, buses, trucks and ambulances, uniform rate of 18 per cent on all auto parts and three-wheelers.
All individual life insurance policies — whether term life, ULIP, endowment or reinsurance — are exempt from GST.
Special GST rate of 40 per cent will be levied on pan masala, tobacco products, cigarettes and aerated drinks containing added sugar.
