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GST 2.0 takes effect: Key tax cuts and reforms you should know

GST 2.0, India’s next generation of Goods and Services Tax reforms, takes effect from September 22. The overhaul brings wide-ranging changes including exemptions on insurance, lower GST on face powders and shampoos, and revised rates for medicines, milk, and delivery services. Here’s a detailed look at the key updates

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GST

India’s biggest overhaul of the Goods and Services Tax (GST) since its rollout in 2017, dubbed “GST 2.0”, officially comes into force today. The reform package, announced by Prime Minister Narendra Modi in a 19-minute televised address yesterday, has been described as the country’s “next generation GST reforms” — a move aimed at simplifying the tax structure and boosting consumer confidence ahead of the festive season.

Here are the major highlights of GST 2.0:

1. Life Insurance Policies Made GST-Free

All individual life insurance products — including term insurance, endowment policies, and ULIPs — are now fully exempt from GST. Reinsurance for these products has also been brought under the exemption.

2. Health Insurance Gets Relief

Individual health insurance policies, family floaters, and senior citizen health covers are exempted from GST, reducing costs for policyholders.

3. Transport Services

  • Road transport: Passenger transport by road will continue at 5% without ITC, but operators can opt to pay 18% with ITC.
  • Air travel: Economy class remains taxed at 5%, while business and premium classes continue at 18%.

4. Local Delivery Services

GST liability on deliveries made via e-commerce operators (ECOs) shifts to the ECO when services are provided by an unregistered vendor. If the provider is registered, they remain liable. Delivery services will attract a standard 18% GST.

5. Medicines Stay at 5%

The Finance Ministry clarified that medicines remain under the 5% GST slab rather than being exempted. A full exemption would block manufacturers from claiming input tax credits (ITC), raising production costs and retail prices.

6. Leasing and Renting of Goods

Leasing or renting goods without an operator will attract the same GST rate as the goods themselves. For instance, leasing a car without a driver will be taxed at 18%, matching the rate on car sales.

7. Imports Covered Under GST 2.0

The revised GST rates also apply to imports. Integrated GST (IGST) will be levied at the new rates unless specific exemptions are notified.

8. Milk Products: Dairy vs Plant-Based

  • Exempted: Ultra High Temperature (UHT) processed dairy milk.
  • Taxed at 5%: All plant-based alternatives such as almond milk and soy milk, which previously faced higher slabs of 12–18%.

9. Personal Care Products

GST rates on face powders and shampoos have been reduced, a move the Finance Ministry says is meant to simplify the framework rather than favour large corporations.

10. Toward “Atmanirbhar Bharat”

PM Modi hailed GST 2.0 as a decisive step toward a self-reliant India, stressing that the new framework will make compliance easier, cut costs for consumers, and strengthen India’s economic ecosystem.

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Dead frog found in Gwalior school meal sparks probe into hygiene lapses

A dead frog discovered in a Mid-Day Meal at a Gwalior school has led to a district investigation following earlier complaints of poor food quality.

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A disturbing incident at a government primary school in Gwalior has triggered an official inquiry after a dead frog was found in food prepared under the Mid-Day Meal scheme. The discovery has renewed concerns over food safety standards in schools across Madhya Pradesh.

Viral image prompts swift action by district authorities

A photo circulating online showed a dead frog in a cooked vegetable dish reportedly served at the Government Primary School in Gokulpura. The incident came to light when teachers noticed the contamination before lunchtime. They recorded a video, alerted authorities and pointed out that complaints about foul smell, insects and poor-quality food had been raised earlier as well.

The uproar prompted immediate intervention from the District Panchayat. The Chief Executive Officer ordered a detailed probe, directing District Education Officer Hariom Chaturvedi to verify the video’s authenticity and review how the contamination occurred.

Separately, senior officials, including Collector Ruchika Chauhan, have sought reports from the school administration and the Mid-Day Meal provider. Authorities have stated that strict disciplinary action will follow if negligence is confirmed.

Renewed scrutiny of the Mid-Day Meal programme

This incident adds to ongoing concerns about hygiene and monitoring under the meal scheme, which is meant to improve child nutrition and encourage school attendance. Despite being a key welfare initiative, repeated lapses in food quality have been reported in the state, raising questions about oversight and accountability.

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Delhi records sharp early December temperature dip as cold wave threat grows

Delhi recorded its lowest early December minimum in more than a decade as IMD warns of an approaching cold wave.

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Delhi started the month on an unexpectedly cold note, with temperatures dropping much lower than what the capital typically experiences in early December. The India Meteorological Department (IMD) reported a minimum of 5.7°C on December 1 — the lowest first-week December reading in more than a decade.

Unusual chill grips the capital

IMD data shows that early December temperatures in Delhi usually remain between 7°C and 11°C. Instances of colder starts have been rare, with only a few years — such as 2012 and 2017 — recording single-digit lows around this period. In recent years, the mercury has seldom dipped below 8°C at the beginning of the month, making this year’s drop particularly notable.

IMD anticipates that the cold spell may continue, with parts of Delhi likely to meet cold wave criteria. Typically, the capital slides below 5°C only after December 10. Last year, temperatures reached 4.9°C by December 11, while in 2023, the minimum fell below 5°C on December 15. In 2022, the lowest was 5°C recorded on December 25.

Delhi’s all-time December minimum remains 0°C, recorded on December 27, 1930.

Winter forecast indicates longer, stronger cold spells

IMD’s seasonal projection for December 2025 to February 2026 suggests normal to below-normal temperatures across central and northwest India, while southern states and the Northeast may witness warmer-than-usual minimum temperatures. Parts of Rajasthan near the border are also expected to experience above-normal nighttime temperatures.

Delhi is already close to entering a cold wave phase — defined as a minimum below 10°C and 4.5°C or more below normal at two or more stations. The last time the capital recorded a December cold wave was in 2021, spanning four days.

IMD also predicts 2–5 additional cold wave days in Madhya Pradesh, Uttar Pradesh, and Bihar this season. Meanwhile, regions such as Rajasthan, Punjab, and the Northeast may see fewer cold wave days, indicating a stronger winter in central India and milder spells in some northwestern and northeastern areas.

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Sanchar Saathi not mandatory, clarifies Jyotiraditya Scindia amid privacy outrage

Communications Minister Jyotiraditya Scindia has clarified that the Sanchar Saathi app is not mandatory on new phones and can be deleted, countering Opposition claims of surveillance.

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Jyotiraditya Scindia

Amid the growing political storm over the Centre’s directive asking mobile phone makers to pre-install the Sanchar Saathi app on all new devices, Communications Minister Jyotiraditya Scindia has clarified that the app is not mandatory and users are free to delete it if they choose.

Minister says app is optional, aims to protect users

Responding to concerns flagged by the Opposition over alleged surveillance risks, Scindia said users will have full control over the app. He compared it to other pre-installed apps that users can choose to keep or remove.

“Don’t activate it. If you want to keep it in your phone, keep it. If you want to delete it, do so,” he said, adding that the app will remain dormant if not used.

The minister emphasised that Sanchar Saathi is designed to safeguard citizens against cyber fraud. “This is a matter of customer protection. There is nothing mandatory. If you do not want to register it, don’t. And if you want to delete it, delete it,” he said, noting that many people are unaware such a tool exists.

Opposition flags privacy concerns, calls move “surveillance”

Congress leaders have accused the government of enabling intrusive monitoring.

  • KC Venugopal said the decision was “beyond unconstitutional”, citing the fundamental right to privacy.
  • Priyanka Gandhi Vadra called Sanchar Saathi a “snooping app”, saying citizens’ privacy was under threat.
  • Priyanka Chaturvedi termed it “another surveillance moment”.
  • Karti Chidambaram alleged the move mirrored actions in authoritarian regimes.

Government rejects criticism, cites rising cyber fraud

Countering Opposition remarks, Scindia said the government was attempting to clear misconceptions. He stated that cyber fraud worth ₹22,800 crore took place in 2024, and Sanchar Saathi was developed to help citizens report fraud, track lost phones, and prevent misuse of telecom resources.

“When we are giving Sanchar Saathi to the common citizen, they are saying it is Pegasus. We cannot show truth to those who don’t want to see it,” Scindia said.

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