GST Council Approves 2-Tier Tax Structure of 5% and 18%, To Be Effective From September 22; There Is a Complete Reduction in Common Man and Middle Class Items, Says Nirmala Sitharaman (Watch Video)
The GST Council approved a two-tier rate structure of 5 and 18 per cent today, September 3, which will be implemented from September 22. After the 56th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced significant reductions in GST rates. She said the move will provide relief to the common man and the middle class.
Today, September 3, the GST Council approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22. It is reported that the 56th meeting of the GST Council lasted for about 10.5 hours, during which the Centre and states thrashed out key tax proposals. After the 56th GST Council meeting, Union Finance Minister Nirmala Sitharaman announced significant reductions in GST rates. She said the move will provide relief to the common man and the middle class. As per the announcement, items on which GST has been reduced to 5 per cent include hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles. On the other hand, items on which GST has been reduced to zero from the existing five per cent include Ultra-high temperature milk, chena and paneer. "All the Indian breads will see a nil rate. So roti or paratha or whatever it is, they all come to nil," Sitharaman said. Food items such as namkeen, bujjiya, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, and ghee have been included in the five per cent GST bracket. Finance Minister Nirmala Sitharaman further said that items whose GST has been reduced to 18 per cent from 28 per cent include air conditioning machines, TVs, dishwashing machines, small cars, and motorcycles equal to or less than 350 cc.
Nirmala Sitharaman Announces Major GST Rate Cuts
#WATCH | Delhi: After the 56th GST Council meeting, Union Finance Minister Nirmala Sitharaman says, "In common man and middle class items, there is a complete reduction."
Items on which GST has been reduced to 5%- hair oil, toilet soap, soap bars, shampoos, toothbrushes,… pic.twitter.com/jaHxlmsVbS
— ANI (@ANI) September 3, 2025
GST Council Clears Two-Tier Rate System
#BREAKING | The #GST Council cleared a two-tier rate system of 5% and 18%, set to take effect from September 22.
Track LIVE updates 🔗 https://t.co/OaVcbteMaK pic.twitter.com/uwGPmhuvDy
— The Times Of India (@timesofindia) September 3, 2025
Complete List of Items and Their New GST Rates
Hon’ble Prime Minister Shri @narendramodi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort.
Working on the same principle, the GST Council has approved significant reforms today.
These reforms have a multi-sectoral and… pic.twitter.com/NzvvVScKCF
— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025
(The above story first appeared on LatestLY on Sep 03, 2025 10:41 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
