The Government of India is back, yet again, with a big bang surprise with its Navratri Gift and Diwali Bonanza “Next-Gen GST Reform.”
After the 56th GST council meet, Finance Minister Nirmala Sitharaman announced that the decision to bring a simplified two-tier from a four-tier GST slab. The decision was unanimously backed by all the states after consulting and discussing with all the states. Most economists have hailed the measure and termed it a blueprint for a simplified, efficient tax regime, which is much more transparent. It is bringing relief to enterprises, farmers, businesses, households, and all.
But, how will this impact the common man? What changes were seen in the stock market, and their impact on the macro economy?
Let’s Take A Quick Look At The Next-Gen GST Reforms:
Next-Gen GST for Different Sectors
| REDUCED PRICE ON DAILY ESSENTIALS | FROM | TO |
| Hair Oil, Shaving Creams, Shampoos, Toilet Soaps, Tooth Brushes | 18% | 5% |
| Dairy Products Such As Butter, Ghee, Spreads | 12% | 5% |
| Packed Snacks Such As Namkeens, Mixtures, & Bhujiyas | 12% | 5% |
| Sewing Machines And Their Parts | 12% | 5% |
| Products For Babies, Such As Feeding Bottles, Napkins, And Diapers | 12% | 5% |
| Utensils | 12% | 5% |
| HEALTHCARE SECTOR | FROM | TO |
| All The Diagnostic Kits And Reagents | 12% | 5% |
| Corrective Specs | 12% | 5% |
| Individual Health And Life Insurance | 18% | Nil |
| Glucometer And Test Strips | 12% | 5% |
| Thermometer | 12% | 5% |
| Medical Grade Oxygen | 12% | 5% |
| EDUCATION SECTOR | FROM | TO |
| Pencils, Crayons, Pastels, Sharpeners | 12% | Nil |
| Erasers | 5% | Nil |
| Maps, Globes, And Charts | 12% | Nil |
| Exercise Books And Notebooks | 12% | Nil |
| AGRICULTURE AND FARMERS | FROM | TO |
| Tractors | 12% | 5% |
| Drip Irrigation System And Sprinklers | 12% | 5% |
| Agricultural, Harvesting And Threshing, Horticulture Or Forestry Machines For Soil Preparation, Cultivation | 12% | 5% |
| Tractor Tyres And Parts | 18% | 5% |
| Specified Bio-Pesticides And Micro Nutrients | 12% | 5% |
| AUTOMOBILE SECTOR | FROM | TO |
| Motorcycles (350 Cc And Below) | 28% | 18% |
| Petrol And Petrol Hybrid, CNG Cars (Within 1200 Cc & 4000mm), LPG | 28% | 18% |
| Motor Vehicles For Transport Of Goods | 28% | 18% |
| Diesel And Diesel Hybrid Cars (Not Exceeding 1500 Cc & 4000 Mm) | 28% | 18% |
| 3 Wheelers | 28% | 18% |
| Electronic Appliances | From | To |
| Monitors And Projectors | 28% | 18% |
| Air Conditioners | 28% | 18% |
| Dish Washing Machines | 28% | 18% |
| Television (Above 32” Includes LED & LCD Tvs) | 28% | 18% |
This GST reform aims to ease living and boost Atmanirbhar Bharat.
Other than these goods, there are luxury products or the SIN goods that will have higher rates with the purpose of encouraging people not to use SIN products that cause harm to their health.
Another impact of GST reform was seen on the Indian share market, with a 900-point jump in Sensex and Nifty. Therefore, it can be concluded that the Next-Gen GST reform is an opportunity and a necessity for the middle-class population. However, after its implementation, people can witness its impact on the taxpayers.