GST Council Decisions: Preparations are in full swing by the government to provide relief to the common people. For this, the government is going to cut the tax rates. The most important thing in this is that after the reduction in GST rate, the budget of the common people will not deteriorate. Let us tell you that an important meeting of the GST Council is going to be held on 3-4 September 2025, in which big decisions like reducing the GST slab from 4 to 2 and a reduction in tax rates can be taken. Regarding this, the Group of Ministers (GoM) has submitted its recommendations to the Council. However, not all states have been able to form an opinion regarding the removal of cess. Some states are in favor of imposing additional duties, while some are talking about fixing new rates.
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Hope of relief for the general public
It is believed that the council can give great relief to the students and the common people. There is a proposal to bring many food products like milk, cheese, roti, paratha, pizza, and bread under zero GST. Apart from this, educational items like pencils, erasers, maps, and atlases can also be made tax-free, which currently attract 5% to 12% GST. This will reduce the cost of children’s education.
Tax on medicines and medical items will be reduced
It can be recommended in the GoM meeting that the government completely remove GST on medicines for cancer and rare diseases. At present, GST is 5% to 12%. Apart from this, tax on products like oxygen, steam, iodine, and potassium iodate can be reduced from 12% to 5%. At the same time, there is a proposal to reduce GST from 12% to 5% on bandages, surgical rubber, gloves, diagnostic kits, X-ray equipment, glasses, and goggles. Along with this, GST on thermometers and surgical equipment can be reduced from 18% to 5%. This will provide a lot of relief to the common people.
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Food items and clothes will also become cheaper
Apart from this, there is a proposal to reduce tax on some other products in the council meeting, in which it is recommended to reduce tax on agricultural products, fertilizer acid, and bio-pesticides from 18%/12% to 5%. Along with this, tax on butter, ghee, dairy spread, dry fruits, condensed milk, jam, fruit jelly, bhujia, juice, fruit pulp, etc. can also be reduced from 12% to 5%.
Along with this, there is a proposal to impose 5% GST instead of 18% on things like ice cream, pastries, and water bottles. At the same time, there is talk of increasing the limit of 5% tax on readymade clothes from Rs 1000 to Rs 2500, while clothes above Rs 2500 can be taxed at 18% instead of 12%.