2 days ago
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The GST Council has reduced the GST rate on various items, and this directly impacts the common man. From reducing tax on medicines to deducting GST on cars, the Modi government has given a 'big Diwali gift' to Indian citizens as promised.
In the 56th GST Council meeting, Finance Minister Nirmala Sitharaman announced a host of tax cuts. These tax cuts are set to impact taxes on around 40 items, including several daily-use essentials, small cars, white goods, and education.
The GST rate cut will be effective from September 22. This can also benefit the small car-buying consumers. Let's see how much rate cut is announced on petrol and diesel cars.
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Earlier, the GST on cars was 28-31 per cent. This tax has been reduced to 18 per cent now.
Petrol cars
If someone is buying a Rs 10,00,000 car, they can get the benefit of over Rs 85,000 because the GST has been reduced to 18 per cent.
Understand with calculations
Price earlier at 29% GST: Rs 10,00,000
Base price (ex-GST): Rs 7,75,194
Now price at 18% GST: Rs 9,14,729
Total savings: Rs 85,271 (about 8.5% cheaper)
Diesel car
Tax on diesel cars was higher earlier. Due to 31% GST, the prices have increased a lot. But now, after the implementation of 18% GST, there is a saving of up to Rs 1.50 lakh.
Understand with calculations
Price earlier at 31% GST: Rs 15,00,000
Base price (ex-GST): Rs 11,45,038
Now price at 18% GST: Rs 13,50,146
Total savings: Rs 1,49,854 (about 10% cheaper)
GST on Medicine
One of the other biggest announcements was removing tax on 33 life-saving drugs and medicines, which was 12 per cent earlier.
As per the revision, life-saving drugs, health-related products, and some medical devices will see a rate cut from 12 per cent/18 per cent to 5 per cent or nil.
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