GST 0% Tax Slab: Goods And Services That Are Now Tax Free | FULL LIST
Finance Minister Nirmala Sitharaman on Wednesday announced what is being described as the most significant restructuring of the Goods and Services Tax (GST) system since its introduction in 2017. Branded as “GST 2.0,” the reform introduces a simplified two-slab structure while retaining a special category for luxury and sin goods.
The revised framework reduces taxes on a wide range of essentials, medicines, and automobiles. At the same time, a new high tax slab of 40% has been earmarked for luxury and sin goods. A key component of the reforms is the exemption of several goods and services from GST altogether. Items moved into the 0% tax category include food products, medicines, education supplies, insurance, and certain imports in defence and aviation.
Here is the list of all the goods that are tax-free under the new GST regime.
Various food items, including milk, cheese, parathas, and pakoras, are tax-free under the new GST regime.
FOOD ITEMS AT 0% TAX UNDER NEW GST REGIME
UHT milk, pre-packaged chena/paneer, chapati, roti, paratha, parotta, khakhra, pizza bread
DEFENCE AND AVIATION IMPORTS are tax-free under the new GST regime.
DEFENCE AND AVIATION IMPORTS AT 0% TAX UNDER NEW GST REGIME
Flight and target simulators, defence sub-assemblies, drones, unmanned vessels, missiles, rockets, ejection seats, C-130/C-295MW aircraft, deep submergence vessels, sonobuoys, and specialised high-performance batteries.
MEDICINES AND HEALTHCARE are in the zero tax bracket under the new GST regime.
MEDICINES AND HEALTHCARE AT 0% TAX UNDER NEW GST REGIME
33 life-saving drugs (earlier 12%), 3 specialised medicines for cancer/rare diseases (earlier 5%)
EDUCATION AND STATIONERY items are now tax-free under the new GST regime.
EDUCATION AND STATIONERY AT 0% TAX UNDER NEW GST REGIME
Exercise books, graph books, lab notebooks, uncoated paper for notebooks, maps, atlases, globes, pencil sharpeners, erasers, pencils, crayons, pastels, drawing charcoals, tailor's chalk, zero category GST.
All health and life insurance policies attract zero tax under the new GST regime.
HEALTH AND LIFE INSURANCE AT 0% UNDER THE NEW GST REGIME
All individual health insurance and life insurance policies, including family floater plans and reinsurance, have been moved to 0% GST.
