Bengaluru (Karnataka) [India], September 4 : Bharatiya Janata Party (BJP) MP Tejashwi Surya on Thursday lauded the Prime Minister Narendra Modi for the Goods and Services Tax (GST) reforms, saying that these reforms are historic and by rationalising tax evasion, a new dimension has been given to the entire economy.
"Prime Minister Narendra Modi has truly assured a historic system... By rationalising tax evasion, a new dimension has been given to the entire economy... This will lead to an increase in production... These reforms are historic... 0% GST on education, 0% GST on cancer and life-saving medicines, 0% GST on medical insurance... We are among the few countries where there is 0% GST on health insurance..."Surya told the reporters here.
The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.
While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.
Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Notably, some essential services and educational items are fully exempt from GST, including individual health, family floater, and life insurance.Additionally, GST is not applicable to health and life insurance premiums, as well as education and healthcare services, such as certain services related to education and healthcare, which are also GST-exempt.