The Goods and Services Tax (GST) Council has announced a major overhaul under GST 2.0, reducing rates on several consumer products while exempting key food essentials. As part of the changes, all television sets will now attract an 18% GST, Finance Minister Nirmala Sitharaman confirmed. Similarly, small cars and motorcycles with engines up to 350 cc will also be taxed at 18%.
Alongside these revisions, essential dairy products including milk and paneer have been made completely tax-free, offering direct relief to households. The restructuring also lowers levies on construction materials such as cement and other consumer durables, which is expected to ease costs across multiple sectors.
Officials said the new rate structure, effective September 22, is designed to spur domestic demand and revive consumer spending amid economic headwinds. While the government anticipates a short-term revenue loss, experts believe the tax cuts will give a strong push to both industry and consumption, particularly ahead of the festive season.
