On the occasion of Independence Day this year, from the ramparts of Red Fort, Prime Minister Narendra Modi announced the Next Generation of GST reforms by Diwali. His vision was realised on 3rd September with the GST Council reducing tax rates in many sectors to ease the lives of citizens. Today, we take a look at the reforms for the tax-free goods.
Under the Next Generation GST reforms, the government has taken significant steps to ease the burden on the common man by exempting several essential goods from the GST. Under the new structure, Consumer goods, including Ultra-High-Temperature milk, pre-packaged food items, and staple foods such as unbranded rice, wheat, and pulses, have been exempted from GST. All varieties of bread have also been placed under the no-GST slab, making them more affordable for households. To ease the burden and make premiums more affordable, GST on life and health insurance premiums is exempted under the new structure. This decision will encourage the wider adoption of health insurance, thereby reducing out-of-pocket medical expenses. People across the country are also welcoming this decision. Talking to the Media, a common man, Nimish Jain, said that the government has given a great gift to the people ahead of the festive season.
The GST exemption in these sectors is expected to provide individuals with significant relief in purchasing daily essentials. New tax rates will come into effect from the 22nd of this month.
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