From Puja Items to Insurance: What Gets Cheaper as New GST Rates Start today

Implementation of GST from today: Revised GST rates are set to be implemented nationwide starting today. The government claims that these changes will make everyday items and festive materials cheaper. This will directly impact people's pockets and enhance the festive spirit.

Festival Relief

Prices of idols, dauras, soups, and puja materials are expected to decrease ahead of Navratri, Chhath Puja, and Diwali. Prime Minister Narendra Modi described it as a "double blast of happiness," saying that GST 2.0 will ease the burden on ordinary consumers and increase purchasing power.

Election Season Impact

The changes come at a time when the Bihar Assembly elections are approaching. Chhath Puja is Bihar's most important festival, and reducing prices before that time is considered politically significant. The BJP hopes this move will attract voters.

What Changes?

• Individual life insurance policies will now be tax-free.
• Private health insurance plans have also come under the GST exemption.
• Medicines are not fully exempted but are taxed at a reduced rate of 5%.
• The 5% tax on road passenger transport will remain unchanged. The same rate applies to economy class air travel.

Clarification on Rules

The GST Council has clarified that registration rules will remain the same. The new rates will be applicable from the date of supply, meaning the revised tax will be levied on goods sold from September 22nd. Previously generated e-way bills will remain valid and will not need to be reissued.

The GST reforms, being implemented just before the festive season, are being considered both a relief for consumers and an election strategy for the government. Shopping is now expected to increase in the markets.