GST rate cuts from September 22; Relief for Common Man, Boost for Businesses

The Goods and Services Tax reforms launched by the government are all set to reduce tax rates of a range of daily use items of consumers from September 22.

The GST Council has simplified the indirect tax system into a two-tier structure of 5 per cent and 18 per cent from a four-tier structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent.

The GST rate reduction and rationalisation with a focus on commonman will reshapes how consumers and businesses will pay tax from September 22.

From medicines and milk to cars, soaps, and even IPL tickets, the GST Council’s latest rate rationalisation is expected to ease the tax burden of consumers significantly.

Reforms undertaken for dairy products, the GST Council approved the exemption of several dairy products from taxes. Items like Paneer, Chhena and Ultra High Temperature Milk which attracted a five percent GST rate are now tax-free.

This will ensure availability of these products at affordable rates. Furthermore, dairy oils including Butter, Ghee and Cheese holding a 12 percent GST previously, have been slashed down to 5 percent now.

Similarly, milk cans of iron, steel and aluminium have also been reduced to 5 percent from 12 percent.

Meanwhile, the GST on plant-based milk beverages is also cut down from 18 percent to 5 percent offering relief to consumers on healthier dairy alternatives.

Talking to media, Managing Director of Gujarat Cooperative Milk Marketing Federation, Jayen Mehta lauded the decision as a great news for producers and consumers. He said lower taxes will boost consumption and provide producers access to a larger and continuous market.

This significant tax rationalization is expected to boost the dairy sector and extend benefits to both farmers and consumers, contributing to the overall socio-economic development in the country.

The reform will directly benefit over 8 crore rural farmer families, particularly small, marginal and landless labourers engaged in rearing milch animals for their livelihoods, while also supporting a large segment of consumers.