Key Points

While speaking to ANI, Bihar Deputy CM said, "I thank the Prime Minister and the Finance Minister that under their guidance, the entire GST Council has passed it. The concerns of farmers, the common man, and the entire Indian economy have been addressed. The medical sector has been completely exempted from this, whether it is insurance or medicines for serious illnesses... Through this, a booster dose has been given to India's 'Swadeshi' campaign."

The Swadeshi Campaign promotes the use of Indian-made goods and a boycott of foreign products to foster economic self-reliance and nationalism.

Finance Minister Nirmala Sitharaman on Wednesday announced a sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.

- ANI