National Desk: Prime Minister Narendra Modi, during his Independence Day speech from the Red Fort, had announced a reduction in GST rates. Since then, people were eagerly waiting to know which items would become cheaper. Now, the government has released a list of products that are likely to see a price cut. The GST Council will hold a meeting next month to finalize the decision. Let’s take a look at the items where GST reduction is expected.
Which Items Will See GST Rate Cuts?
- Cement: Currently, cement attracts 28% GST, which may be reduced to 18%. This will make house construction more affordable and benefit the common man.
- Clothes and Food Items: Certain clothing items and food products may be shifted to the 5% GST slab.
- Cars: Small cars (up to 4 meters in length) may see a GST cut from 28% to 18%. This will bring down the total tax burden on these vehicles from around 50% to 40%.
- Insurance: GST on term and health insurance could be completely abolished. The move aims to make insurance more accessible, ensuring better coverage for serious illnesses.
- Salons: Small salons may be exempted from GST, while medium and large salons could see a reduction from 18% to 5%.
What Will Be the Biggest Change?
The government is set to bring a major structural change in GST reduction. Earlier, the benefits of GST concessions were available only within a fixed threshold. Now, the new proposal ensures that the relief will be applicable to everyone, allowing the general public to enjoy the full benefit.
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