New Delhi, Sep 22
India's revamped Goods and Services Tax system, dubbed next-generation GST or "GST Bachat Utsav", was implemented on Monday, reducing taxes on around 370 products, including daily essentials and lifesaving medicines.
Union Finance Minister Nirmala Sitharaman announced that the overhaul aims to inject approximately Rs 2 lakh crore into the economy by increasing the disposable income of consumers.
Over 50 items, including UHT milk, khakhras, pre-packaged paneer, and breads like chapatis and parathas, will now fall under a zero-tax bracket due to the new structure.
Thirty-three essential drugs and therapies for conditions including cancer and rare diseases are now exempt from GST, while the tax rate on numerous other medicines have been reduced from 12 per cent to zero. Medical devices, such as diagnostic kits and glucometers, now incur a GST of just 5 per cent.