New Delhi: In yesterday’s GST Council meeting, Finance Minister Nirmala Sitharaman announced that GST now has only two slabs, roti, milk-paneer, health-life insurance tax free. GST will have only two slabs, 5% and 18%. This will make common use items like soap, shampoo, AC, cars, cheaper. This decision was taken in the 56th meeting of the GST Council. Finance Minister Nirmala Sitharaman gave this information on 3 September. Finance Minister Sitharaman said that many food items, including milk, roti, paratha, chenna will be GST free. There will be no tax on individual health and life insurance. 33 life saving medicines, medicines for rare diseases and serious diseases will also be tax-free.
With this decision, gold and silver continue to attract a 3% GST on value and a 5% GST on jewelry making charges. The decision provides clarity for bullion and jewelry traders ahead of the festive season.
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.
Concerns About Medical Products & Medicines
In a move hailed as a step toward more affordable healthcare, the government has reduced the Goods and Services Tax (GST) on medicines and medical products. This decision, according to Nikkhil K Masurkar, CEO of Entod Pharmaceuticals, aligns with India’s goal of universal healthcare and reinforces its status as the “Pharmacy of the World.”
However, Masurkar also highlighted a potential issue: an “inverted duty structure” that could negatively impact the medical device industry. He noted that if not addressed, this could squeeze the profit margins of small and medium-sized domestic manufacturers, who are critical to the healthcare supply chain.
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