GST Reforms: From slabs, new rate implementation date to what will get cheaper — All you need to know in 10 points

GST Reforms: The GST Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday approved GST rate cut on a total of 396 items benefitting the common man.

The GST Council meeting that began on September 3 will conclude on September 4, with Nirmala Sitharaman  announcing the outcome of the discussions in a late evening press conference today.

The new GST rates will be applicable from 22 September, the Finance Minister said.

Here are 10 things to know about the 56th GST Council meet chaired by FM Nirmala Sitharaman:

1. As per the announcement made by Nirmala Sitharaman, there will now be two new GST slabs - 5 per cent and 18 per cent. Apart from this, there will be a special slab. The Finance Minister said that the new GST rates will be implemented from September 22.

2. The GST Council is to reviewed the rates in the health insurance sector, announcing Exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country as well as exemption of GST on all individual health insurance policies (including family floater policies and policies for senior citizens) and reinsurance thereof to make insurance affordable for the common man and increase the insurance coverage in the country

3. The GST Council has also decided to raise the threshold for footwear and apparel in the 5 per cent slab to ₹2,500 from ₹1,000.

4. The GST Council also discussed the nil tax rate items, including daily-use unpacked food items. Items like paneer, ultra high temperature milk, and all Indian breads will attract no GST now instead of a 5 per cent GST.

5. GST rates decreased from 18 per cent to 5 per cent for common use food and beverages, ranging from butter and ghee to dry nuts, condensed milk, sausages and meat, 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.

6. The GST rate on shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap and hair oil is was brought down from 18 per cent to 5 per cent.

7. The Council has also reduced GST on Petrol, LPG and CNG vehicles of less than 1,200 cc and not more than 4,000 mm length and diesel vehicles of up to 1,500 cc and 4,000 mm length to an 18 per cent rate from 28 per cent. The taxes were cut on motorcycles of up to 350 cc, consumer electronics like ACs, dishwashers, and TVs to 18 per cent against 28 per cent currently.

8. Property rates are expected to become cheaper for consumers, with cement rates being reduced from 28 per cent to 18 per cent.

9. Items that are likely to get costlier include footwear and apparel priced above ₹2,500, as the GST rate on these items are likely to be moved up from 12 per cent to 18 per cent.

10. The GST Council also imposed a 40 per cent GST rate on all petrol and diesel automobiles above 1,200 cc and 1,500 cc, and longer than 4,000 mm, as well as motorcycles above 350 cc, yachts and aircraft for personal use, station wagons, racing cars and smoking pipes. Other than these, certain ‘sin’ goods like tobacco will continue to attract 40 per cent GST rate.