GST 2.0 rates came into effect today; What will be benefit and impact? Understand in 10 points

Life insurance policies will be exempted after the implementation of the new GST rates. All individual life insurance policies are now exempt from GST.

New Delhi: A major change has been implemented in the Goods and Services Tax (GST) from today. After the implementation of the new rates, many everyday items will become cheaper. Here are the 10 things you should keep in mind.

Life insurance policies will be exempted after the implementation of the new GST rates. All individual life insurance policies are now exempt from GST. This will directly benefit the common people.

Health insurance exemptions: GST will no longer be applicable on individual health insurance policies, which will keep people's tax money in their pockets. This is a relief for the common people.

Why medicines were not completely exempted from GST: The Finance Ministry stated that while medicines may not have been fully exempted, they have now been placed in the 5 percent slab. The ministry states that if medicines were fully exempted, manufacturers would lose the ability to claim ITC on inputs such as raw materials and packaging.

How much GST on which types of milk: Ultra High Temperature (UHT) milk obtained from dairy sources is fully exempt from GST. However, this exemption does not apply to plant-based milk. Under GST 2.0, all plant-based milk beverages, including soy milk, will now be taxed at a uniform 5 percent.

What will be the impact on face powder and shampoo: The new GST reform will reduce the prices of face powder and shampoo. According to information shared by the Finance Ministry, the rate reduction is not to benefit large companies, but to simplify the GST structure.

What is the impact of GST on rent: It is reported that leasing or renting goods without an operator attracts the same tax rate as the property itself. Simply put, if the sale of a car attracts 18% GST, leasing or renting an unregistered car will also attract 18% tax. The same principle applies to other goods.

GST rates on imports: The revised rates under GST 2.0 will also apply to imports. Integrated GST (IGST) will be levied at the new rates from September 22nd. This will apply unless specific exemptions are notified.

Passenger transport by road will continue to be taxed at 5% without input tax credit (ITC). For air travel, economy class tickets will continue to be taxed at 5%, while business and other premium classes will remain taxed at 18%.

GST on local delivery services: Under the new GST rules, if local delivery services are provided by an unregistered service provider from an e-commerce operator, the GST liability shifts to the e-commerce operator.