GST Rate Update: The new Goods and Services Tax (GST) rates have come into effect today, making several household items, cars, bikes, and TVs cheaper. This is the biggest change since the implementation of GST in 2017. The existing tax slabs of 5%, 12%, 18%, and 28% have been replaced with just two rates – 5% and 18%.
Under the new reforms, everyday food items and essential goods, life and health insurance policies, automobiles and transportation, electronics, home appliances, stationery, beauty services, lifestyle services, and machinery will become cheaper. Highly expensive items will be taxed at 40%, while tobacco and related products will remain in the 28% plus cess bracket. Finance Minister Nirmala Sitharaman had earlier stated that the new GST system reduces the tax burden on people.
Boosting GST Rate in Healthcare: Cheaper Medicines, Medical Devices, and Insurance Starting Today
The long-awaited GST 2.0 has officially come into effect today, bringing about changes in the tax structure for India’s healthcare sector. For millions of families, the key benefit is that common medicines, diagnostic equipment, and insurance premiums are now cheaper.
The GST Council announced these reforms earlier this month, with the aim of simplifying the tax system and reducing the financial burden on consumers. This move comes after years of industry lobbying and public demand for relief in healthcare costs. Under the new system, all individual life and health insurance premiums are now GST-exempt (previously taxed at 18%), and most medicines and many medical devices are now under a uniform 5% tax rate, instead of the previous 12-18%. Essential, life-saving medicines are completely exempt from GST.
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