Srinagar: The new Goods and Services Tax (GST) rates have come into effect today, with a plethora of household items, cars, bikes, and TVs, among others, becoming cheaper.
The changes, the biggest overhaul since GST was introduced in 2017, will see the current 5 per cent, 12 per cent, 18 per cent and 28 per cent structure replaced with just two rates – 5 per cent and 18 per cent.
Under the new reforms, daily food and essentials, life and health insurance policies, automobiles and transport, electronics, appliances, stationery, beauty services, lifestyle services, and machinery will become cheaper. The ultra-luxury items will be taxed at 40 per cent, while tobacco and related products will stay in the 28 per cent plus cess bracket.
Finance Minister Nirmala Sitharaman had earlier said that the new GST structure has reduced the tax burden on people.
