Tax Overhaul Delivers Holiday Happiness for Middle Class: Larger Televisions, Air Conditioners, Hair Care Products, Dental Hygiene Items, and Hair Oils Slated for Price Reductions

Union Finance Minister Nirmala Sitharaman has announced significant GST reforms that will come into effect on April 1, 2025, and ahead of Navratri and Diwali. The focus of these reforms is on the common man, with every tax on daily use items undergoing a rigorous review, and in most cases, the rates of these items have come down drastically.

One of the key drivers of the economy will be given prominence through these GST reforms. The GST slab for everyday use items has been reduced from 18% to 5%. This reduction applies to various everyday items such as hair oil, shampoo, toothpaste, toilet soap bar, tooth brushes, and shaving cream.

The new GST rates will also significantly reduce indirect taxes for the common man. For instance, the GST rate for petrol and petrol hybrid cars not exceeding 1200 cc and 4000 mm, diesel and diesel hybrid cars not exceeding 1500 cc and 4000 mm, 3-wheeled vehicles, motor cycles of engines with 350 cc and below, and motor vehicles for transport of goods will be reduced from 28% to 18%.

Aspirational items such as air conditioners, television above 32 inches (including LED and LCD TVs), monitors and projectors, and dish washing machines will also attract a lower GST rate from 28% to 18%. Individual life insurance and health insurance will now have 0% GST.

The agriculture sector, farmers, and the health sector will also benefit from these GST reforms. Labour-intensive industries have received good support from these reforms. The GST Council has approved the rate overhaul, limiting slabs to 5% and 18%.

Electric vehicles will continue to attract a 5% GST rate. However, certain items such as pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco, and bidi will not be affected by the new GST rates.

The GST reforms aim to benefit various sectors and the common man, with the focus being on reducing the burden of indirect taxes and making essential items more affordable. These reforms are a step towards promoting economic growth and improving the quality of life for the common man.

Tax Overhaul Delivers Holiday Happiness for Middle Class: Larger Televisions, Air Conditioners, Hair Care Products, Dental Hygiene Items, and Hair Oils Slated for Price Reductions