No GST On Individual Life, Health Insurance, 33 Lifesaving Drugs

The changes will take effect from Sept. 22, with phased implementation for certain items.

The GST Council on Wednesday approved historical changes to India's indirect tax structure - adopting a 5 per cent and 18 per cent tax structure - and several daily-use goods will become cheaper from September 22.

Motorcycles below 350 cc engine will be taxed at 18% under the revised GST framework.

Among automobiles, motorcycles exceeding 350 CCs will attract the 40% tax rate.

The GST council also reduced the taxation slabs from four to two of 5% and 18% respectively.

GST reforms are not just for rationalising rates but structural too, Nirmala Sitharaman said on Wednesday, adding that the decision of the GST Council has been taken with full consensus and all ministers supported rate rationalisation.

In a historic step toward overhauling India's indirect tax system, the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, on Wednesday approved sweeping rate rationalisation reforms.

Small cars and motorcycles with engines up to 350 cc will now have their GST reduced from 28 percent to 18 percent.

The changes will take effect from Sept. 22, with phased implementation for certain items.

The Goods and Services Tax Council, chaired by Finance Minister Nirmala Sitharaman, announced a major change that only two rates will remain from September 22 - 5 per cent and 18 per cent, eliminating the 12 per cent and 28 percent GST slabs.

The GST on health and insurance products, which stood at 18 per cent, has been cut to zero, in a major revamp of the GST rate structure.

The Goods and Services Tax (GST) Council announced today that only two rates will remain from September 22 - 5 per cent and 18 per cent.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, cut the current four slabs down to two - scrapping the 12 per cent and 28 per cent rates, while retaining the 5 per cent and 18 per cent slabs.

Items in the 12% bracket including dairy items, pre-packaged snacks, utensils, baby essentials and sewing machines and their parts will also see rates reduced to 5%.