Overview

• Many essentials get relief with several education stationery items made tax-free and a wide range of foods and personal care products shifted to the 5% slab.
• All individual life and health insurance premiums are exempt from GST, while 33 life-saving drugs and key medical products move to nil or lower rates.
• Small cars and motorcycles up to 350cc, air-conditioners, televisions, and cement now fall under 18% GST, whereas larger cars shift to a 40% slab and EVs stay at 5%.
• Tobacco products continue at 28% plus compensation cess until state compensation loans are repaid, after which they transition to the new 40% category.
• Equities rose on the announcement as analysts forecast a consumption boost and modest inflation easing with the changes taking effect at the start of Navaratri.