BENGALURU: Home Minister G Parameshwara on Thursday welcomed the Centre’s decision to reduce Goods and Services Tax (GST) but said there is still a need to bring down taxes on many more essential items.
Speaking to the reporters, G Parameshwara said, “For essential commodities that reach common people, GST should be less or not at all. But even on such items, they had imposed high GST earlier. Now they have reduced it, which shows they have realised the difficulties of common people.”
Parameshwara said the central government has finally understood the concerns raised by his party, which had long been demanding a cut in Goods and Services Tax (GST), introduced on July 1, 2017.
“The central government has now understood. Our party too, had been demanding this. We welcome the decision to reduce GST. But there is still a need to lower GST on many other items. We should also study how GST is implemented in other parts of the world,” he added.
#WATCH | Bengaluru, Karnataka: On #GSTReforms, state Home Minister G. Parameshwara says, “It has two parts; one is that for all the essential commodities, they have reduced the GST to 5%, and in some cases even to zero. Definitely, it is a welcome decision. However, at the same… pic.twitter.com/Z1ZCW9YROw
— ANI (@ANI) September 4, 2025
GST, introduced in India on July 1, 2017, replaced previous indirect taxes under the 101st Constitutional Amendment Act, 2016. The initial, unified tax structure featured multiple slabs, including 0%, 5%, 12%, 18%, and 28%, to apply to different goods and services based on their essentiality and luxury status.
Finance Minister Nirmala Sitharaman announced a sweeping reduction in GST, aimed at providing relief to households, farmers, businesses and the healthcare sector.
The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.
5per cent slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.
While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.
Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.
Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt. (ANI)
