New Delhi, Sept 4, 2025| SKY LINK TIMES
GST Council at its 56th meeting has approved sweeping rate cuts and rationalisation of slabs. Finance Minister Nirmala Sitharaman, briefing the media, said these reforms mark a new phase of India’s indirect tax regime, with focus on affordability, healthcare, agriculture, and labour-intensive industries.
Table of Contents
Key Highlights of GST Council’s Rate Cuts
- Insurance (NIL GST):
- All individual life insurance policies (term life, ULIP, endowment).
- All individual health insurance policies, including family floater & senior citizen plans.
- Reinsurance of such policies.
- Medicines & Medical Devices:
- 33 life-saving drugs: GST cut from 12% → NIL.
- 3 cancer & rare disease drugs: GST cut from 5% → NIL.
- Other medicines: 12% → 5%.
- Medical apparatus & devices: 18% → 5%.
- Daily Essentials (5% GST):
- Hair oil, soaps, shampoos, toothbrushes, toothpaste.
- Kitchen & household articles, bicycles.
- Food items: namkeen, bhujia, sauces, pasta, instant noodles, chocolates, coffee, cornflakes, preserved meat, butter, ghee.
- Zero GST on:
- Ultra-high temperature (UHT) milk.
- Chena and paneer.
- All Indian breads.
- Consumer Durables & Automobiles:
- GST cut from 28% → 18% on ACs, televisions, dishwashers, small cars, and motorcycles.
- Agriculture & Farmers:
- All agricultural equipment: 12% → 5%.
Structural Reform in GST Slabs
- 4 slabs reduced to 2 slabs:
- 5% and 18% retained.
- 12% and 28% scrapped.
ALSO READ: GST Collections Rise 6.5% in August to Rs 1.86 Lakh Crore (skylinktimes.in)
Financial & Economic Impact
- Estimated revenue impact: ₹48,000 crore, termed “fiscally sustainable” by Revenue Secretary Arvind Shrivastava.
- The reform corrects inverted duty structures, resolves classification disputes, and provides greater predictability for businesses.
Political & Administrative Backing
- The meeting was chaired by FM Nirmala Sitharaman with MoS Finance Pankaj Chaudhary, CMs of Delhi, Goa, Haryana, J&K, Meghalaya, and Odisha, and Deputy CMs of several states.
- Prime Minister Narendra Modi was credited with setting the tone for next-gen tax reforms.
Effective Date
📌 All new GST rates will take effect from September 22, 2025 (Navratri Day).
For More Info Stay Tuned: https://skylinktimes.in
