English हिन्दी
Connect with us

India News

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

Published

on

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.

India News

Congress, BJP attack Bhagwant Mann over remarks on Punjab blasts

Congress and BJP have jointly criticised Punjab CM Bhagwant Mann after he linked recent blasts near defence sites to political motives, triggering a controversy.

Published

on

Bhagwant Mann

A political row has erupted in Punjab after Chief Minister Bhagwant Mann linked recent blast incidents to political motives, drawing sharp criticism from both the Congress and the Bharatiya Janata Party (BJP).

The controversy follows two low-intensity explosions reported within a short span of time — one near the Border Security Force (BSF) headquarters in Jalandhar and another close to an army cantonment area in Amritsar. The incidents raised concerns over security, particularly given the sensitive nature of the locations.

In response, Mann suggested that the blasts could be part of a larger political strategy. His remarks triggered a strong backlash, with opposition parties accusing him of politicising a serious security issue.

Leaders from the Congress criticised the Chief Minister’s statement, calling it inappropriate and alleging that such comments undermine the gravity of the situation. They stressed that matters related to national security should be handled with caution and responsibility.

The BJP also joined the criticism, questioning the basis of Mann’s claims and urging the state government to focus on investigation and law enforcement instead of making political allegations.

The developments have led to an unusual moment where both Congress and BJP appear aligned in their criticism of the Aam Aadmi Party-led government in the state.

Meanwhile, the blasts themselves have intensified concerns over safety in border regions, with authorities continuing their investigation into the incidents. No casualties were reported, but the proximity to defence establishments has made the issue particularly sensitive.

The episode has further escalated political tensions in the state, with security and accountability emerging as key points of debate.

Continue Reading

India News

Himanta Biswa Sarma resigns as Assam chief minister, oath ceremony likely after May 11

Himanta Biswa Sarma resigns as Assam Chief Minister after BJP-led NDA’s victory. He will continue as caretaker CM until the new government is sworn in after May 11.

Published

on

Himanta sharma

Assam Chief Minister Himanta Biswa Sarma resigned from his post on Wednesday, paving the way for the formation of a new government after the BJP-led NDA secured a decisive victory in the 2026 Assembly elections.

Sarma submitted his resignation to Governor Lakshman Prasad Acharya at Lok Bhawan in Guwahati. The Governor accepted the resignation and asked him to continue as the caretaker Chief Minister until the new government takes charge.

The resignation comes after the NDA’s strong electoral performance, where the alliance won a clear majority in the 126-member Assembly, ensuring its return to power for another term.

Oath ceremony expected after May 11

Speaking to reporters after submitting his resignation, Sarma said the swearing-in ceremony for the new government is likely to be held after May 11.

He indicated that Prime Minister Narendra Modi has been invited to attend the ceremony but is unavailable until May 11, which has influenced the tentative schedule.

Decision on next chief minister soon

Sources suggest that central observers, including senior BJP leaders, are expected to arrive shortly to oversee the selection of the legislature party leader. The newly elected MLAs will then decide on the next Chief Minister.

Despite the formal resignation, party sources indicate that Sarma is likely to continue in the role for another term, given the BJP’s strong mandate in the state.

The move marks the beginning of the government formation process in Assam following the election results declared earlier this week.

Continue Reading

India News

Rahul Gandhi and Vijay alliance took shape through backchannel talks, early signals from Congress leaders

Congress outreach and political calculations led to Rahul Gandhi and Vijay coming together after the Tamil Nadu 2026 election results.

Published

on

The coming together of Rahul Gandhi and actor-politician Vijay in Tamil Nadu after the 2026 Assembly elections was not sudden, but the result of behind-the-scenes political manoeuvring and early signals within the Congress.

According to media reports, some leaders in the Tamil Nadu Congress had already sensed the scale of Vijay’s surge during the campaign, anticipating what was later described as a “wave” in favour of his party.

After the results, where Vijay’s Tamilaga Vettri Kazhagam (TVK) emerged as the single largest party but fell short of a majority, communication channels between the Congress leadership and Vijay quickly became active.

A key moment in this evolving political equation was a phone call from Rahul Gandhi to Vijay, congratulating him on the party’s strong performance. The conversation was seen as more than a courtesy, signalling the possibility of cooperation at a time when government formation required additional support.

Reports indicate that discussions within Congress weighed the political benefits of supporting Vijay, especially given the shifting dynamics in the state where traditional dominance by major Dravidian parties has been challenged.

With TVK needing allies to cross the majority mark, Congress emerged as a potential partner, leading to a broader political realignment in the state. This development also triggered tensions within opposition alliances, highlighting the strategic importance of the decision.

The evolving partnership reflects a mix of electoral pragmatism and changing voter sentiment, particularly the growing influence of younger voters, which leaders acknowledged as a key factor in the election outcome.

Continue Reading

Trending

© Copyright 2022 APNLIVE.com