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CBIC slams Rajdeep Sardesai for claiming that sugar-coated popcorns will be taxed at 18%, clarifies that GST on popcorn of all flavours is 5% under new structure

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CBIC slams Rajdeep Sardesai for claiming that sugar-coated popcorns will be taxed at 18%, clarifies that GST on popcorn of all flavours is 5% under new structure

The Central Board of Indirect Taxes and Customs (CBIC) has issued a clarification on the revised Goods and Services Tax (GST) applicable to popcorn, refuting reports that sugar-coated or caramel popcorns would be newly taxed at 18%. Earlier in the day, several reports had claimed that while popcorn mixed with salts and spices will be subject to 5% GST, Caramel popcorn will be taxed at 18%, which is the rate for sugar confectionery.

The reports said that Caramel popcorn will be taxed at 18%, as it contains sugar and falls under confectionery.

CBIC’s clarification came on X as a reply to a post by journalist Rajdeep Sardesai on the social media platform making the same claim. In a now deleted post, Sardesai wrote, “The POPCORN debate has been resolved at last! *Salted or spiced popcorn will now attract a uniform 5% GST, whether it’s sold loose or in pre-packaged form. *Caramel popcorn will be taxed at 18%. Bring on the salted popcorn folks!”

Responding to this post, CBIC stated that the new GST for sugar confectionary is also 5%, not 18%. Therefore, Caramel popcorn will be taxed at 5%.

The central board wrote, “Dear @sardesairajdeep All sugar confectionary items will now be taxed at 5%. Kindly refrain from sharing incorrect information.”

They added the link to the press releasing giving the list of new GST rates. The list shows that the GST for Sugar boiled confectionery has been reduced from 12% to 5%, and tax for Sugar confectionery is reduced from 18% to 5%. The list makes it clear that all items containing sugar will be now taxed at 5%, down from earlier 12% and 18% rates for various items.

Earlier, salted popcorn was taxed at 5% if sold loose and at 12% if it was sold in branded packaging. Caramel popcorn was taxed at 18%, irrespective of the packaging. This varied rate on popcorn had become a point of major debate at the time of its introduction.

GST Council announces major tax cuts on electronics items, bringing down GST on TVs, ACs, dishwashers and others from 28% to 18% ahead of festive season

OpIndia Staff
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GST Council announces major tax cuts on electronics items, bringing down GST on TVs, ACs, dishwashers and others from 28% to 18% ahead of festive season

Goods and Services Tax (GST) Council announced major reductions in tax rates on several electronic items on Wednesday, 3rd September. Indian consumers received a festive season gift after this announcement. The govt has removed the GST slabs 12% and 28%, while retaining only 5% and 28% slabs. The move, expected to bring down retail prices and boost demand, is part of the government’s broader revised GST reforms aimed at simplifying the tax system.

Customers of electronics items will be benefited because of the GST reform. Earlier, most electronic goods were taxed at a flat 28 per cent. With the new reforms, the government has streamlined the system into a simpler two-tier structure of 5 per cent and 18 per cent. Under this, several household electronic appliances will now be taxed at the lower 18 per cent slab instead of 28 per cent.

Union Finance Minister Nirmala Sitharaman, who chaired the 56th GST Council meeting, said the new tax rates will take effect from 22nd September, first day of Navratri. She added that the move is designed to rationalise the tax system while also making everyday goods more affordable for families.

Key appliances get cheaper

The reduced GST rates apply to four major categories of electronics, air conditioners, televisions above 32 inches (including LED and LCD models), monitors and projectors, and dishwashing machines. These items, which earlier attracted 28 per cent GST, will now fall under the 18 per cent slab.

Small-screen TVs below 32 inches were already taxed at 18 per cent, so their prices will remain unchanged. But for large TVs and other large appliances, prices will fall.

Industry experts welcomed the decision, citing that it would not only increase demand but also spur support for the electronics environment. Ravi Agarwal, Co-Founder and Managing Director of Cellecor India, said that the new tariff levels will not only make the products more affordable for consumers but also simplify compliance for firms.

No change for mobiles and laptops

While the tax cuts will benefit larger appliances, there is no change in GST rates for mobile phones and laptops. Both categories will continue to be taxed at 18 per cent. This means there will be no immediate drop in the prices of smartphones and laptops, though experts note that cheaper televisions, ACs, and dishwashers will give consumers relief in festive spending.

Impact on prices

The 10 per cent cut in GST is likely to significantly reduce the prices of big TVs, monitors, projectors, dish washing machines, and air conditioners at the retail level. For example, big LED and LCD TVs larger than 32 inches will be charged only 18 per cent GST whereas earlier they were charged 28 per cent, and similarly ACs and dish washers will also get the same discount.

According to a PTI report, an air-conditioner could now cost Rs 1,500 to Rs 2,500 less, depending on the model. Industry executives believe the cut will not just drive volumes but also push buyers toward premium, energy-efficient models.

Image via X/nsitharamanoffc

Avneet Singh Marwah, CEO of SPPL and Exclusive Brand Licensee of Thomson in India, said the cut on smart TVs will not only make technology more affordable but also drive digital inclusion across households. 

Similarly, Aditya Khemka, Managing Director of CP PLUS, noted that the rationalisation of GST on electronics and components would reduce the cost of hardware for modern surveillance systems, making them more accessible for businesses and residential complexes.

Government’s vision

The GST Council described the reforms as part of its ongoing effort to simplify the indirect tax structure. Finance Minister Nirmala Sitharaman stressed that the aim was to make the system easier for industries while easing the burden on ordinary consumers. “These reforms have been introduced to make the structure simpler and boost demand,” she said during the press briefing.

By lowering GST on household electronics ahead of the festive season, the government hopes to give a push to consumer spending while also strengthening India’s electronics industry. For families, it means big-ticket appliances may finally become a little lighter on the pocket.

GST Reforms 2025: Modi govt makes automobiles budget-friendly for the middle class through major tax cuts

OpIndia Staff
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GST Reforms 2025: Modi govt makes automobiles budget-friendly for the middle class through major tax cuts

The middle class has received the perfect gift ahead of the festive season, as the Modi government has announced significant Goods and Services Tax (GST) reductions on automobiles. Following a GST Council meeting held yesterday (3rd September), the government declared significant reductions in indirect taxes on two-wheelers, three-wheelers, and four-wheelers.

The decision is expected to benefit the middle class, which usually makes automobile purchases during the Diwali season, to avail the special discount offers provided by automakers around this time. Under the reforms, the GST slab has been reduced from 28% to 18% on small passenger cars, three-wheelers, ambulances, motorcycles up to 350cc, and on new pneumatic tyres.

Image via X/nsitharamanoffc

Petrol, LPG or CNG-driven cars with an engine capacity of under 1200 cc and not over 4 m long and diesel cars with an engine capacity not exceeding 1500 cc and length up to 4m, have also been included in the 18% tax category.

Cars like the Maruti Alto, Maruti Fronx, Tata Nexon, Maruti Brezza, Hyundai Venue, Mahindra XUV 3OO, Kia Sonet, Baleno, and Skoda Kushaq fall under the four-meter length category and will be subject to the reduced 18% GST rate.

In what the government described as the ‘Next-Generation Reforms’, it has made an effort to promote eco-friendly commute options by reducing tax on bicycles from 12% to 5%.

Luxury vehicles subject to new formed 40% slab

Under the GST reforms, luxury cars have been subjected to a condsolidated 40% tax. Earlier, a 28% GST and 17-22% compensation cess used to be levied on luxury cars, bringing the net taxes to 45-50%. After the reforms are applied, luxury cars will become cheaper as there will be a 5-10% reduction in the tax. The modification has been done by the government to do away with compesnation cess.

Besides, motor vehicles categorised as Utility Vehicles, by whatever name called including Sports Utility Vehicles (SUV), Multi Utility Vehicles (MUV), Multi-purpose Vehicles (MPV) or Cross-Over Utility Vehicles (XUV), with an engine capacity exceeding 1500 cc, length over 4 m, and ground clearance of 170 mm and above, will be taxed under the 40% slab. Bikes exceeding 3500 cc will also attract a 40% tax rate.

Revised GST rates for other vehicles

Under the revised GST rates, three-wheelers, buses, and ambulances will attract reduced GST rates of 18% from the earlier 28%. Similarly, the GST rates for Lorries and trucks will also be reduced to 18%.

In addition to that, trailers, semi-trailers of tractors with 1800 cc and non-road tractors will be taxed at 5%. An 18% tax rate will apply to road tractors for semi-trailers with an engine capacity of above 1800 cc. Bikes with up to 3500cc engine capacity will be taxed at the rate of 18%.

All car parts and accessories will be subject to an 18% GST, while the GST for electric vehicles will remain unchanged at 5%.

Kerala court acquits Professor, who was falsely accused of sexual harassment by SFI-linked students 11 years ago, conspiracy against victim was hatched at CPIM office

OpIndia Staff
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Kerala court acquits Professor, who was falsely accused of sexual harassment by SFI-linked students 11 years ago, conspiracy against victim was hatched at CPIM office

After over a decade of being arrested on accusations of sexual harassment levelled by SFI-linked students, the ordeal of retired professor, Anand Vishwanath, has ended as a Kerala court acquitted him of all charges.

In a recent ruling, a Thodupuzha Additional Sessions Court, noted that the professor was falsely implicated by four girl students from CPI(M)’s student wing Student Federation of India (SFI), after he caught them doing malpractice during a postgraduate examination.

Now retired, Professor Anand Vishwanath, headed the department of Economics at Government College, Munnar in Idukki district in 2014. He was chargesheeted in four cases wherein the SFI-linked students accused him of sexual harassment inside the examination hall. Professor Anand Vishwanath then reported the matter to the invigilator on duty and gave him the manuscripts he seized from SFI-linked students.

One one after the incident, all the four women students filed a joint complaint with the education minister and the State Women’s Commission, accusing Professor Anand Vishwanath of sexually harassing them in the exam hall on different occasions between August and September. An internal committee was formed and FIR was registered against Vishwanath.

The trial started, and in 2021, the Chief Judicial Magistrate court at Devikulam, sentenced Vishawanath to three years’ imprisonment in two cases, and acquitted him in two other cases. 

However, Anand Vishwanath challenged the conviction before the Additional Sessions Court in Thodupuzha. Now, the court has set aside his conviction in these cases.

Appearing for the defendant, advocate S Ashokan contended that the prosecution did not producr independent witness. He also said that the invigilator was not made a witness in this case.

 “In all the cases, the same girls were the witnesses. If one of the girls is a victim in a case, the other three were arraigned as witnesses in that case. In the other three cases, the same girls were listed in different roles as victims and as witnesses. The court has found that the cases were politically motivated,” the advocate said.

While setting aside the conviction, judge Laijumol Sherif, said that the testimonies of the four students were full of contradictions, omissions and embellishments, making the case an improbable one.

The judge added that these testimonies were not corroborated with evidence from individual witnesses. “Therefore, the evidence brought on record through the complainants is not sufficient to prove the occurrence, but is more than enough to prove that the professor was falsely implicated in the crime,” the court said.

The court further observed that the complainant students did not face any action for their malpractice and that a conspiracy was hatched at CPIM’s office to falsely implicate professor Anand Vishwanath.

“…No action was taken on the malpractice of the four students, and instead there occurred a conspiracy at the party office of the CPIM to rope in the professor…” the court said.

Aligarh: Family extorts Rs 46 lakhs by misusing the SC-ST Act, had filed 15 fake cases in 10 years for compensation; NCW demands strict action

OpIndia Staff
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Aligarh: Family extorts Rs 46 lakhs by misusing the SC-ST Act, had filed 15 fake cases in 10 years for compensation; NCW demands strict action

A shocking case has come to light from Aligarh, Uttar Pradesh. Chandrawati Devi, a resident of Hastpur village, and her family have been accused of misusing government schemes meant for Scheduled Castes (SC) and fraudulently pocketing around ₹46 lakh.

What is the case?

According to a Dainik Bhaskar report, police say that in the last 10 years, 15 different cases have been registered against Chandrawati Devi and her family. Many of these cases were filed under the SC/ST (Prevention of Atrocities) Act, 1989.

Under this law, victims are provided financial assistance and legal protection. The allegation is that Chandrawati and her family repeatedly filed false cases to avail the benefits of these schemes and have so far received nearly ₹46 lakh.

NCW calls for strict action against the accused

Dr. Archana Majumdar, a member of the National Commission for Women (NCW), has taken the matter seriously and written to the Chairman of the National Commission for Scheduled Castes (NCSC), Kishore Makwana. She has demanded a thorough investigation and strict action against those found guilty. The NCW has also handed over all documents and police reports to the NCSC.

What does the law say?

There are strict punishments for misuse of the SC/ST Act. If a person files a false case or wrongfully avails government aid, they can face imprisonment ranging from six months to seven years along with a fine. In cases of proven financial fraud, action can also be taken under the Prevention of Corruption Act, 1988, which carries up to seven years’ imprisonment and confiscation of property.

The incident has triggered anger among local residents as well. Ramveer Singh, a resident of Agra, said, “Those who take money through false cases are snatching away the rights of genuinely poor and Dalit families.” Social activist Rajesh Kumar pointed out that this is not the first such incident. In 2018, a similar case was reported in Aligarh where a Dalit family fraudulently obtained ₹3 lakh compensation by filing a false case.

The NCSC will now investigate the matter. The commission has civil court-like powers, such as summoning individuals, calling for documents, and examining witnesses under oath. Chairman Kishore Makwana has previously taken a tough stance against misuse of SC welfare schemes.

This case is not limited to one village but highlights the seriousness of SC/ST scheme misuse across the country. Experts and social activists argue that the government must enforce strict monitoring and verification processes to ensure that aid reaches the truly needy, while fraudsters are curbed effectively.

GST reforms in healthcare: 18% GST on health and life insurance removed, 33 life-saving drugs will also be tax-free, medical items to attract only 5% GST

OpIndia Staff
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GST reforms in healthcare: 18% GST on health and life insurance removed, 33 life-saving drugs will also be tax-free, medical items to attract only 5% GST

The GST Council, on Wednesday, 3rd September, announced a major GST reform, which provided a big relief to consumers purchasing health insurance and medical products. The government is removing the Goods and Services Tax (GST) on individual health insurance and individual life insurance policies, which were previously taxed at 18%.

In addition to this, the GST on various healthcare products and lifesaving drugs has also been reduced, making them more accessible to the general public.

Healthcare made cheaper as part of GST reforms

With the new reforms, the government has put a strong focus on reducing healthcare costs. Individual life insurance policies, including term life, endowment and ULIPs, will not attract any GST now. 

Similarly, all individual health insurance policies, including family floater plans and policies for senior citizens, will also be exempted from GST. Earlier, people had to pay 18% GST on these, which often increased the overall premium amount.

Apart from insurance, several key healthcare items have also seen sharp reductions in taxes. Products like glucometers, test strips, corrective spectacles, medical-grade oxygen, diagnostic kits and reagents, which earlier attracted 12% GST, will now be taxed at just 5%. 

Thermometers, which previously carried an 18% GST, have also been moved into the 5% slab. Moreover, GST on 33 life-saving drugs and medicines has been brought down from 12% to zero, offering significant relief to patients who rely on these medicines.

Government says reforms will benefit the common man

Union Finance Minister Nirmala Sitharaman, while announcing the decisions after the 56th GST Council meeting, said the move was aimed at making healthcare and insurance affordable for all.

“After detailed discussions and consultations with stakeholders, we decided to exempt individual insurance policies. Families and individuals will directly benefit from this, and companies will be expected to pass on the benefit to policyholders,” the Finance Minister said.

She also added that the government wants to make it easier for people to buy medical insurance without worrying about high costs. Revenue Secretary Arvind Shrivastava confirmed that insurance companies have assured the government that the benefits of these tax cuts will be passed on to the buyers.

A landmark decision

Industry leaders have welcomed the tax cuts, calling them a landmark decision. Tapan Singhel, Managing Director of Bajaj Allianz General Insurance, said the exemption of GST on health insurance is a progressive step. “At a time when medical inflation is rising steeply, this decision reduces the financial burden on families. It also aligns with the goal of ‘Insurance for All by 2047,’ making healthcare more accessible and increasing insurance penetration in the country,” he said.

The latest data shows that India’s overall insurance penetration has slipped to 3.7% in FY24 from 4% in FY23. Experts believe that this reform will help boost both life and health insurance coverage, while also making healthcare products and medicines more affordable for millions of people.

GST Reforms 2025: Taxes on cars under ‘luxury’ category come down drastically in the revised slabs introduced by the Modi government

OpIndia Staff
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GST Reforms 2025: Taxes on cars under ‘luxury’ category come down drastically in the revised slabs introduced by the Modi government

In a major overhaul of the existing Goods and Services Tax (GST) regime, the Modi government has introduced several middle-class-friendly changes in the indirect taxes on a wide range of items from everyday essential items to luxury cars.

Under the new reforms announced on Wednesday (3rd September), after a meeting of the GST Council, luxury cars have been brought under a newly created tax category of 40%. Under the new rules, cars over 4 metres long and having petrol engines above 1200 or diesel engines above 1500 cc have been categorised as ‘luxury goods’.

As per the existing tax system, luxury cars are taxed at 28% GST with an additional compensation cess of 17%-22%. This makes the net tax on luxury cars 45-50%. But, after the new GST reforms, a consolidated tax of 40% will apply to the luxury cars without any compensation cess. This way, the cost of luxury cars will be reduced by 5-10%.

Luxury cars fall in the category of ‘sin goods’ under the new GST reforms. Sin goods are products, which are considered harmful to health or society, and include tobacco, gutka, pan masala, alcoholic or sugary beverages, Cars larger than 1,200 cc (petrol) or 1,500 cc (diesel), Motorcycles above 350 cc, and Aircraft for personal use. Sin goods have historically been heavily taxed by the government to discourage their consumption.

The reason behind bringing luxury cars under the ‘special tax rate’ of 40% is that the government intended to get rid of a separate compensation cess without dropping the overall tax. Therefore, it merged the compensation cess with the GST and provided a relief of 5-10%.

Government revises GST rates on other vehicles

Three-wheelers and buses will attract reduced GST rates of 18% from the earlier 28% after the reforms. Ambulances, which fall in the category of vehicles fitted with all equipment and furniture required for an ambulance, will also be taxed at 18%. Similarly, the GST rates for Lorries and trucks will also be reduced to 18%.

Besides, 5% tax will be levied on the trailers, semi-trailers of tractors with 1800 cc and non-road tractors will be taxed at 5%. An 18% tax rate will apply to road tractors for semi-trailers with an engine capacity of above 1800 cc engine capacity. Bikes with up to 3500 engine capacity will be taxed at the rate of 18% but the those exceeding 3500 cc will attract a 40% tax rate.

Manipur: Kuki-Zo Council agrees to open NH-2, Suspension of Operations Agreement renewed with Kuki National Organisation and United People’s Front

OpIndia Staff
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Manipur: Kuki-Zo Council agrees to open NH-2, Suspension of Operations Agreement renewed with Kuki National Organisation and United People’s Front

The Centre on Thursday announced a breakthrough in Manipur’s ongoing peace process, with the Kuki-Zo Council (KZC) agreeing to reopen National Highway-02. The crucial lifeline, which had remained blocked amid ethnic tensions, will now be accessible for the smooth movement of commuters and essential supplies. A press release issued by the Ministry of Home Affairs said that the decision followed sustained deliberations between community representatives and the Ministry of Home Affairs (MHA).

The decision came after a series of meetings between officials of Ministry of Home Affairs and a delegation of Kuki-Zo Council in the last few days at New Delhi. The KZC has given commitment to cooperate with Security Forces deployed by the union govt to maintain peace along NH-02.

Along with it, a tripartite meeting was also held in New Delhi between the MHA, the Government of Manipur, and representatives of the Kuki National Organisation (KNO) and the United People’s Front (UPF). At the meeting, all parties signed a one-year Suspension of Operations (SoO) Agreement under revised ground rules. The revised ground rules reaffirm the territorial integrity of Manipur and the need for a negotiated settlement to restore long-term peace in the region.

As part of the agreement, KNO and UPF will relocate seven designated camps away from sensitive, conflict-prone areas, while also reducing the total number of such camps. In addition, all weapons presently held in the camps will be shifted to the nearest facilities of the CRPF or BSF, ensuring greater oversight by central forces.

The revised terms also introduce stricter monitoring of armed cadres. Security agencies will now carry out thorough physical verification of individuals in the camps to detect and delist any foreign nationals. This provision, officials said, is aimed at preventing infiltration and misuse of the agreement.

To ensure effective enforcement, a Joint Monitoring Group has been constituted to oversee compliance with the revised rules. Any violation of conditions, the government warned, will be dealt with firmly, including the option of reviewing or revoking the SoO agreement.

The ministry described the signing of the pact as a “significant confidence-building step” that would pave the way for restoring normalcy in Manipur while safeguarding its territorial unity.

India, Singapore mark 60 years of ties with pledge to fight terror, boost strategic cooperation

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India, Singapore mark 60 years of ties with pledge to fight terror, boost strategic cooperation

Prime Minister Narendra Modi on Thursday expressed deep gratitude to his Singaporean counterpart Lawrence Wong for extending solidarity with India in the wake of the Pahalgam terror attack. Addressing the media after bilateral talks in New Delhi, Modi underscored that both India and Singapore face shared concerns over terrorism and have a moral duty to confront it together.

“In the wake of the terrorist attack in Pahalgam, I express my gratitude to Prime Minister Wong and the Government of Singapore for their sympathy towards the people of India and for their support in our fight against terrorism. We believe that fighting terrorism with unity is the duty of all humanitarian countries,” Modi said.

The remarks came months after 26 people were killed in the Pahalgam terror attack in April, which prompted India to launch strikes on terror camps in Pakistan and Pakistan-occupied Kashmir under Operation Sindoor. Modi’s statement was not only a diplomatic acknowledgment but also a reaffirmation of India’s growing insistence that the global community must act collectively against terror networks.

Celebrating 60 Years Of India-Singapore relations

PM Modi highlighted that Wong’s visit holds special significance as both nations mark 60 years of diplomatic ties. “During my last visit to Singapore, we elevated our ties to a comprehensive strategic partnership. This relationship goes far beyond diplomacy—it is a partnership with purpose, rooted in shared values, guided by mutual interests, and driven by a common vision for peace, progress, and prosperity,” Modi observed.

Singapore Prime Minister Wong, who is on a three-day official trip to India, echoed the sentiment. Describing the India-Singapore bond as “more important than ever in a world of uncertainty and turbulence,” Wong stressed that trust and shared history form the backbone of the partnership. “Together we can strengthen resilience, seize new opportunities and contribute to stability and growth in our region and beyond. I look forward to working hand in hand with Prime Minister Modi to bring the Singapore-India partnership to even greater heights,” he said.

Modi said the cooperation will now extend into advanced areas such as manufacturing, green shipping, civil nuclear, urban water management, and cutting-edge technologies like AI, quantum, and digital connectivity. He highlighted Singapore’s role as India’s largest trading partner in Southeast Asia and a key pillar of the Act East policy, noting that bilateral trade, investment, defence ties, and people-to-people relations continue to deepen.

Modi also underlined the success of initiatives like the UPI-PayNow linkage, the Semiconductor Ecosystem Partnership, and space collaboration, while announcing the next India-Singapore Hackathon later this year to connect young innovators.

Expanding cooperation into new frontiers

Wong announced that India and Singapore are set to broaden cooperation in emerging sectors, particularly space. He noted that India has already launched over 20 Singapore-made satellites and that the new MoU on space collaboration would “push the boundaries of what we can achieve together.” He also underlined the importance of people-to-people ties as the “bedrock” of the bilateral relationship, with plans to enhance civil service cooperation and cultural exchanges.

The Singapore PM’s itinerary has been a packed one. On Tuesday, he met Finance Minister Nirmala Sitharaman to discuss boosting trade, investment, fintech, skill development, healthcare, sustainability, and connectivity. He also paid tributes at Rajghat alongside his wife, Loo Tze Lui, honoring Mahatma Gandhi’s universal ideals. On Wednesday, Wong met BJP national president and Union Health Minister JP Nadda, further deepening political linkages.

Earlier on Thursday, Wong met External Affairs Minister S. Jaishankar, who expressed confidence that the Singaporean leader’s visit would chart a roadmap for the next phase of the strategic partnership. “Appreciate his constant encouragement for strengthening India-Singapore ties,” Jaishankar posted on X.

As GST on agricultural goods gets slashed, here’s how GST reforms are set to revolutionize agriculture sector

OpIndia Staff
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As GST on agricultural goods gets slashed, here’s how GST reforms are set to revolutionize agriculture sector

In a move that would give a massive boost to India’s agriculture sector, the Modi government slashed the goods and services tax (GST) on various farm goods to 5 percent from 12 percent. These goods include tractors, agricultural, horticultural or forestry machinery for soil preparation or cultivation, lawn or sports-ground rollers, nozzles for drip irrigation equipment, and nozzles for sprinklers.

The GST council rolled out these revised tax rates on Wednesday, September 3. These reduced rates, however, will not be applicable to road tractors for semi-trailers with an engine capacity of more than 1800 cc.

Now, Fixed Speed Diesel Engines of power not exceeding 15HP, other hand pumps, sprinklers, drip irrigation system including laterals, mechanical sprayers, harvesting or threshing machinery, including straw or fodder balers, grass or hay mowers, parts thereof will be under 5 percent GST.

Same will apply to other agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery, including germination plant fitted with mechanical or thermal equipment; poultry incubators and brooders; parts thereof, composting machines, self-loading or self-unloading trailers for agricultural purposes, hand propelled vehicles like hand carts, rickshaws and the like.

Notably, during his address from the ramparts of the Red Fort on this Independence Day, Prime Minister Narendra Modi had announced that the current four-tiered GST structure would be rationalised into a citizen-friendly “simple tax”.

Welcoming the GST reforms, PM Modi said that this will benefit common man, farmers, MSMEs, middle-class, women, and youth.

“During my Independence Day Speech, I had spoken about our intention to bring the Next-Generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy,” PM Modi posted.

“Glad to state that @GST_Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth. The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses,” he added.

Meanwhile, Secretary of the Department of Revenue in the Ministry of Finance, Arvind Shrivastava, said that the decision to correct the inverted duty in GST for agricultural goods will encourage the domestic use of fertiliser.

When asked about the increasing global competitiveness of the farmers and the government’s initiative to raise farmers’ income, Arvind Shrivastava said that the GST Council’s decision to cut tax on agricultural goods will make fertilisers cheaper and will increase productivity.

Shrivastava said, “Under GST, the problem of inverted duty is being solved in the fertiliser sector, which will enable and encourage the domestic use of fertilisers.

“The implements in the agriculture sector, which were at 12 per cent, are being reduced to 5 per cent. This will do two things. First, it will make it cheaper for farmers. Two, we expect more farmers to be able to use it, which enhances productivity… There will be a positive effect,” he added.

Furthermore, the Secretary of the Revenue Department stated that a reduction in GST rates will support ongoing policies and programs in the agricultural sector. He said, “In addition to it, all that the government is doing in the agricultural sector through policies and programs will continue. Eventually, we will be supplementing those effects by this.”

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