56th GST Council Meeting: Next-Gen GST Reforms Announced: Big Relief on Essentials, Healthcare, Automobiles and More

56th GST Council Meeting: Next-Gen GST Reforms Announced: Big Relief on Essentials, Healthcare, Automobiles and More

New Delhi: Following the Hon’ble Prime Minister Narendra Modi’s Independence Day speech from Red Fort, Union Finance Minister Nirmala Sitharaman announced the outcomes of the 56th GST Council meeting, shared the Next-Generation GST Reforms through a press relase.

These reforms are described as “Diwali gift for the nation”, aim to bring down tax rates on essential items, healthcare products, automobiles, and electronic appliances, while also supporting farmers, students, and small businesses.

Change of GST Rates in the 56th GST Council Meeting

Press Conference by Union Minister Nirmala Sitharaman on the outcomes of 56th GST Council Meeting

Daily-use items such as hair oil, soaps, toothpaste, butter, ghee, namkeen, utensils, and clinical diapers will now only have 5% GST instead of 12% or 18%.

Healthcare has received a big gift. Health insurance being made tax-free and GST on medical oxygen, diagnostic kits, and glucometers has been reduced sharply.

The automobile sector too will see relief, with GST on petrol and diesel hybrid cars, motorbikes (below 350cc), three-wheelers, and goods transport vehicles being cut by 10 percentage points. Farmers will benefit from reduced GST on tractors, tyres, pesticides, and drip irrigation systems, making agricultural machinery and inputs cheaper.

In education sector, items like exercise books, pencils, and maps will now be fully exempt from GST. Similarly, appliances like TVs, air conditioners, washing machines, and projectors will see their GST rates drop from 28% to 18%.

Apart from GST Rate cuts, process reforms have also been announced. Taxpayers will get automatic registration within three working days, faster refunds through system-based checks, and simplified procedures for MSMEs.

“The next generation of GST reforms are a gift for every Indian this Diwali. Taxes for the general public will be reduced substantially. Our MSMEs & small entrepreneurs will get huge benefit. Everyday items will become cheaper and this will also give a new boost to the economy,” Hon’ble Prime Minister Modi said in a statement.

With this announcement, the government has highlighted its focus on ease of living and ease of doing business for the citizens of India, making GST simpler and more beneficial across sectors.