Toothpaste, Butter, Eraser: What Is Under 5% GST Or Is Now Exempt

The Goods and Services Tax Council, chaired by Finance Minister Nirmala Sitharaman, announced a major change that only two rates will remain from September 22 - 5 per cent and 18 per cent, eliminating the 12 per cent and 28 percent GST slabs.

"These reforms have been carried out with a focus on the common man. Every tax on the common man's daily use items has gone through a rigorous review and in most cases the rates have come down drastically. Labour-intensive industries have been given good support. Farmers and the agriculture sector, as well as the health sector, will benefit. Key drivers of the economy will be given prominence," Finance Minister Nirmala Sitharaman said after the GST meeting.

Here's a look at what is under 5 per cent GST:

Daily Essentials:

Hair oil, shampoo, toothpaste, toilet soap bar, tooth brushes, shaving cream - down from 18%.

Butter, ghee, cheese, dairy spreads - down from 12%

Pre packaged namkeens, bhujia and mixtures - down from 12%

Utensils - down from 12%

Feeding bottles, napkins for babies and clinical diapers - down from 12%

Sewing machines and parts - down from 12%

Healthcare:

Thermometer - down from 18%

Medical grade oxygen - down from 12%

All diagnostic kits and reagents - down from 12%

Glucometer and test strips - down from 12%

Corrective spectacles - down from 12%

Agriculture:

Tractor tyres and parts - down from 18%

Tractors - down from 12%

Specified bio-pesticides, micro-nutrients - down from 12%

Drip irrigation system and sprinklers - down from 12%

Agricultural, horticultural or forestry machines for soil preparation, cultivation, harvesting and threshing - down from 12%

Renewable energy:

Solar water heaters - down from 12%

Here's a look at what items are under the nil tax slab:

Healthcare:

Individual health and life insurance - down from 18%

Education:

Maps, charts and globes - down from 12%

Pencils, sharpeners, crayons and pastels - down from 12%

Exercise books and notebooks - down from 12%

Eraser - down from 5%

The changes to the tax slabs will mean more money in hand for the common man. Finance Minister Nirmala Sitharaman said that these reforms have a "multi-sectoral" and "multi-thematic" focus and is aimed at ensuring ease of living and business for all.