FM Nirmala Sitharaman has unveiled sweeping GST reforms ahead of the festive season. The GST Council approved a simplified two-slab structure with steep tax cuts: essentials now at 5%, most items at 18%, and 'sin' or luxury goods at 40%, all effective from September 22, the first day of Navaratri. Here’s what’s getting cheaper and what’s not.
00:00Let me start by saying, the Honourable Prime Minister actually set the tone for the next generation reforms on the 15th of August when he spoke from the Red Fort.
00:15So, and he desired that we give the benefit to the people at the earliest.
00:20He mentioned Deepavali, but I'll go through the decisions in detail a bit.
00:29But this reform is not just on rationalizing rates.
00:34It's also on structural reforms.
00:36It's also on ease of living so that businesses can do their business of working together with the GSD with a great ease.
00:45So, we have corrected inverted duty structure problems.
00:49We've resolved classification related issues.
00:53And we've ensured that there will be stability and predictability about the GSD.
01:00Great rationalization, of course.
01:02We've reduced the slabs.
01:03There shall be only two slabs.
01:05And we are addressing also the issues of compensation, says.
01:10Ease of living, simplifying registration, return filing and refunds.
01:14I'm not getting into greater details.
01:16You'll get to know about it.
01:17But then these reforms have been carried out with a focus on the common man.
01:26Every tax levied on common man's daily use items have gone through a rigorous looking into.
01:33And in most cases, the rates have come down drastically.
01:38Labor intensive industries have been given a good support.
01:42Farmers and agriculture as a whole will also benefit by the decisions we have taken today.
01:49Health related also will benefit.
01:52So, the key drivers of economy have been given a prominence.
01:57And much before I get into the details, I want to thank every member of the GSD Council.
02:05Every finance minister who attended the GSD Council today.
02:09There was no absence.
02:11Everyone was present.
02:12We've had a day-long, intense discussion.
02:17But I'm grateful to each one of them.
02:20At the end of the day, they said,
02:23We're all together for the sake of the common man.
02:26So, I want to thank all of them.
02:56But I want to thank all of them for the great rationalization of the GSD Council.
03:02And I want to thank all of them for the first time I want to thank the Pradhan Mantri Ji.
03:08Because he has been after me,
03:14saying that you are all for the goodwill of the GSD Council.
03:17He worked very hard with all of them.
03:28Samrat Chaudhary Ji worked on the rate rationalization.
03:32And not only the chair, but the members of each of these GOM have worked very hard.
03:38I am absolutely appreciative of every one of the ministers.
03:41There is also, of course, trade facilitation measures and process reform.
03:56which are aimed at curbing fraud have led to complex documentation.
04:11usko bhi simplify karne ka
04:13aur data analysis
04:16wagira hai
04:17process reform ke oopar
04:18main vistar se aapke question answer
04:21ke samayi mein javaab doongi
04:22magar
04:23primarily I am sure all your interest
04:27is to know where is what
04:29which one comes down in rate
04:31us mein ek
04:33just indicate
04:36karte huye I will stop my input
04:38if
04:39revenue secretary has anything more he can add
04:42uske baad aapke question
04:43answer karte huye hum baaki sabko
04:45cover kareenge
04:46common man and middle class items
04:50mein
04:50there is a complete
04:52reduction
04:54reduction from 18
04:57or from 12
04:59to 5 percent
05:01I list out those items
05:03all of whom have come to 5 percent
05:05from either 18 or from 12
05:07common man items such as
05:11hair oil
05:11toilet soap
05:13bars
05:13soap bars
05:15shampoos
05:16toothbrushes
05:16toothpaste
05:17bicycles
05:18tableware
05:19kitchenware
05:19and other household articles
05:22have all come to 5
05:23whether they were in 18
05:25or whether they were in 12
05:26similarly
05:27reduction of GST from 5 percent to nil
05:32paan se zero mein jaane wale items
05:36indicate kar rao
05:37ultra high temperature milk
05:40the UHT milk
05:42chena or paneer
05:44all the Indian breads
05:46will see nil rate
05:49so roti kisi ke upar bi
05:51chapati or roti or paratha or whatever it is
05:54they all come to nil
05:56reduction of GST from 12 percent or from 18 percent to 5
06:02is mein food items baut saare hai
06:04namkeen se bujiya hai
06:06sauces se pasta hai
06:08instant noodles se
06:10chocolates, coffee, preserved meat
06:13cornflakes, butter, ghee
06:15yeh sab paanch percent mein aare hai
06:18fir reduction from 28 to 18 percent
06:22is mein middle class ke aspirations meet karne wale baut saare chiz hai
06:28air conditions
06:29air conditioning machines
06:32TVs which are over 32 inches
06:35all TVs now at 18 percent
06:39yeh
06:40I want to underline
06:42all TVs are now at 18 percent
06:45dish washing machines
06:46small cars
06:48motorcycles
06:49equal to or less than 350 cc
06:52are all now coming to 18
06:55agriculture goods such as tractors
06:58agricultural, horticultural and forestry machines
07:02for soil preparation
07:04or cultivation, harvesting or threshing machines
07:07including straw or fodder balers
07:10grass or hay movers
07:12composting machines
07:14etc
07:14are all coming down from 12 to 5 percent
07:19reduction of GST from 12 to 5 percent
07:23on 12 specified biopesticides
07:28also from 12 to 5 is natural menthol
07:33so kisaan ke liye unke products ke liye
07:36jo wo uphyog karte hai
07:38un sab mein it has come down
07:39again from 12 to 5
07:42handicrafts
07:44and also labor intensive sectors
07:46what are they
07:47handicrafts
07:49marble
07:49travertine blocks
07:52granite blocks
07:54intermediate leather goods
07:56yeh sab paanch mein aare hai
07:57reduction of
08:01cement
08:02from 28 to 18
08:04kyunki gar banane mein
08:06middle class ke liye cement itna avishak hai
08:09isi liye 28
08:11it has come down to 18
08:12health related items
08:1533 life saving
08:19drugs and medicines
08:22and they all come down
08:24from 12 to 0
08:26from 5 to 0
08:30and 3
08:31life saving drugs
08:33and medicines
08:34used for treatment of cancer
08:36rare diseases
08:38and other severe chronic diseases
08:41there are several drugs and medicines
08:44coming down to 5 from 12
08:45I am not listing each one of them out
08:47like that
08:50very many other items
08:51diagnostic kits
08:52reagents
08:53blood glucose monitoring system
08:55all of them are coming to 5%
08:57similarly spectacles and goggles
09:01are for correcting vision
09:02they are also coming down to 5%
09:05from 28
09:07I am sure all of you are interested in knowing about automotive sector
09:11about which you have been frequently asking us
09:14from 28 to 18%
09:17on small cars and motorcycles
09:20which are equal to or below 350 cc
09:23reduction of GST from 28 to 18
09:27on buses, trucks and ambulances
09:30uniform rate of 18%
09:33on all auto parts
09:35irrespective of the HS code
09:39three wheelers
09:41from 28 to 18
09:43again
09:44so
09:45I move to one very important thing
09:48on inversion of
09:50correction of inverted duty
09:52the long pending inverted duty structure
09:56problem
09:57is getting corrected
09:59for the man-made textile sector
10:02by reducing GST rate
10:05on man-made fiber
10:06from 18% to 5%
10:09and man-made yarn
10:11from 12 to 5%
10:13so that will take care of every anomaly
10:16that was there in terms of inversion
10:18that's getting sorted out
10:19so this actually gives effect
10:23to government's objective
10:25of the fiber neutral policy
10:28so that's really getting
10:30seen
10:31in our action today
10:33we are also correcting the inverted duty structure problem
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