New Delhi, 22 September (Read News). The new rates of Goods and Services Tax (GST) across the country have become effective from today. These rates, which came into force from the first day of Navratri, now mainly two categories are placed – 5 percent and 18 percent. At the same time, 40 percent tax will be applicable on luxury and luxury items. Except for cigarette, tobacco and other products, new rates have been implemented in all other categories, which has brought relief to consumers of every age group and class community.

From kitchen goods to electronics, medicines, equipment and vehicles, about 400 items have now become cheaper. Large companies making everyday goods (FMCG) have also reduced the prices of their products to make the benefit of GST deduction to customers. Prime Minister Narendra Modi appealed to promote indigenous products and said that the new reforms of GST will give more momentum to India’s development journey. He said that in the last one year, GST and income tax exemption has saved about 2.5 lakh crore rupees to the countrymen, which led to an increase in the demand for consumer confidence and market.

Earlier four rates of GST were applicable – 5%, 12%, 18%and 28%. Now the government has included 99% of goods with 12% in 5% and 90% products with 28% in the category of 18%. This will provide direct relief to the common people every month. Daily use items like soap, powder, coffee, diaper, biscuits, ghee and oil have now become cheaper. Its such as cheese, butter, salty, jam, catchup, dried fruits, coffee and ice cream have also now come into 5% slab. GST on glucometer, diagnostic kits and most drugs has been reduced from 12 or 18% to 5%.

The tax rate on cement has been reduced from 28% to 18%. Tax on TV, AC, fridge and washing machines has also been reduced from 28% to 18%. 18% GST will be applicable on small cars and 28% on large trains. Earlier trains like SUV and MPV were used to take 22% cess with 28% GST, which has now come down to about 40%.

Large relief has also been given in the service sector. GST has been reduced from 18% to 5% on services like salon, fitness club, health spa. At the same time, only 5% GST will be applied to items like hair oil, soap, shampoo, toothbrush, toothpaste, talcum powder, shaving cream and aftershev lotion.