Summary of GST Council 56th Meeting

1. Big Reforms Announced
   • GST structure simplified from 4 slabs to 2 slabs:
     • 18% (Standard Rate)
     • 5% (Merit Rate)
     • 40% (Special de-merit for luxury/harmful goods)
2. Exemptions (No GST)
3. Life insurance policies (term, ULIP, endowment).
4. Health insurance policies (individual, family floater, senior citizens).
5. 33 lifesaving medicines + 3 critical cancer/rare disease drugs.
6. Indian breads (roti, chapati, paratha, parotta, etc.).
7. UHT milk, paneer (packed/labeled).
8. Everyday essentials (hair oil, soap, shampoos, toothpaste, bicycles, kitchenware) → 18%/12% → 5%.
9. Food items (namkeen, pasta, noodles, chocolates, coffee, butter, ghee, sauces, cornflakes, etc.) → 12%/18% → 5%.
10. Medical devices & supplies (glucometers, bandages, kits, reagents, surgical equipment) → 12%/18% → 5%.
11. Agriculture equipment (tractors, threshers, mowers, composting machines) → 12% → 5%.
12. Handicrafts, marble, granite, leather goods → 12% → 5%.
13. Renewable energy devices → 12% → 5%.
14. Hotel accommodation under ₹7,500/day → 12% → 5%.
15. Beauty & wellness services (salons, gyms, yoga) → 18% → 5%.
16. Cement → 28% → 18%.
17. Small cars & bikes ≤350cc → 28% → 18%.
18. TVs (up to 32") & ACs, dishwashers → 28% → 18%.
19. Buses, trucks, ambulances → 28% → 18%.
20. All auto parts → 18% (uniform rate).
21. Correction of inverted duty structure for textiles (fibre & yarn reduced to 5%).
22. Fertilizers (sulphuric acid, nitric acid, ammonia) → 18% → 5%.
23. Pan masala, gutkha, cigarettes, carbonated sugary drinks → taxed at 40% (special de-merit).
24. 22 September 2025 – New GST rates on services apply.
25. 22 September 2025 – New GST rates on goods (except tobacco/pan masala, which will continue at old rates until cess obligations are met).
26. GST Appellate Tribunal (GSTAT) will start accepting appeals by Sept 2025, hearings by Dec 2025.
27. Major Reductions
28. Big-Ticket Items
29. Other Important Changes
30. Implementation Timeline
31. Institutional Reform