{"id":5468,"date":"2025-08-15T16:03:51","date_gmt":"2025-08-15T16:03:51","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/gst-rejig-plan-food-items-medicines-phones-insurance-what-is-likely-to-get-cheaper-business-news\/"},"modified":"2025-08-15T16:03:51","modified_gmt":"2025-08-15T16:03:51","slug":"gst-rejig-plan-food-items-medicines-phones-insurance-what-is-likely-to-get-cheaper-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/15\/gst-rejig-plan-food-items-medicines-phones-insurance-what-is-likely-to-get-cheaper-business-news\/","title":{"rendered":"GST Rejig Plan: Food Items, Medicines, Phones, Insurance\u2014What Is Likely To Get Cheaper? | Business News"},"content":{"rendered":"


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The proposal also signals that some goods will become significantly costlier<\/h2>\n
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The finance ministry has reportedly put forward a proposal to the GST Council to move from the existing four-slab system to a two-slab model, with rates of 5% and 18%. Representational image<\/p>\n<\/figure>\n

India is on the brink of a major GST overhaul<\/a> that promises to simplify the tax structure and significantly alter the cost of goods and services for millions of consumers. The finance ministry has reportedly put forward a proposal to the GST Council to move from the existing four-slab system to a two-slab model, with rates of 5% and 18%.<\/p>\n

This strategic shift is designed to make the tax system more straightforward and, as promised by the Prime Minister, to provide a \u201cDiwali bonanza” to citizens.<\/p>\n

Cheaper: Processed food, phones<\/h4>\n

Under the new proposal, a vast majority of items used by the common person are slated to become cheaper. The plan outlines that 99% of commodities currently taxed at 12% would be shifted to the lower 5% bracket. This change is expected to bring down the prices of a wide range of goods, including processed food items like butter, ghee, and packaged fruit juices.<\/p>\n

Other products, such as mobile phones, which are essential for students and the aspirational middle class, are also likely to see a rate reduction from 12% to 5%. This move would not only make these items more accessible but also boost consumption, which the government believes will fuel higher GDP growth.<\/p>\n

Boost for rural livelihood, essential services<\/h4>\n

For sectors that are crucial to rural livelihoods, such as handicrafts and certain agricultural equipment, the new structure could mean much-needed financial relief. Essential services like medicines, health, and insurance premiums, which are currently taxed at higher rates, are also expected to see a reduction, making them more affordable for a wider population.<\/p>\n

The simplified tax structure is also intended to streamline business operations for traders and MSMEs, with promises of benefits like quick refunds and easier calculations.<\/p>\n

\u2018Sin tax\u2019 items, luxury goods to get costlier<\/h4>\n

While many items are poised to get cheaper, the proposal also signals that some goods will become significantly costlier. The new plan introduces a \u201cspecial rate” of 40% for a select few \u201csin items” and luxury goods, as an additional punitive tax. These products, which are considered injurious to health or are non-essential, include tobacco, cigarettes, and pan masala.<\/p>\n

By moving these items to a much higher tax slab, the government aims to curb their consumption and generate higher revenue from them, thereby offsetting any potential revenue loss from the rate rationalisation on other goods.<\/p>\n

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News<\/a> business<\/a> GST Rejig Plan: Food Items, Medicines, Phones, Insurance\u2014What Is Likely To Get Cheaper?<\/span><\/div>\n
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Last Updated:August 15, 2025, 21:05 IST The proposal also signals that some goods will become significantly costlier The finance ministry has reportedly put forward a proposal to the GST Council to move from the existing four-slab system to a two-slab model, with rates of 5% and 18%. Representational image India is on the brink of…<\/p>\n","protected":false},"author":1,"featured_media":5469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-5468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=5468"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/5468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/5469"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=5468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=5468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=5468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}