New GST, new prices: Govt eyes festive push

Cement has been reduced to 18 per cent, while construction materials such as granite, marble and bricks will now fall under the 5 per cent rate, aimed at lowering the cost of housing and infrastructure.

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Agriculture has received a boost with harvesters, threshers and irrigation equipment now taxed at 5 per cent, while over 30 lifesaving drugs and diagnostic kits have been exempted from GST and essential medicines including Ayurveda and Unani treatments brought under the 5 per cent bracket. Hotel stays up to Rs 7,500 a night will now attract 5 per cent GST instead of 12 per cent, and services such as salons, gyms and yoga centres will also be taxed at 5 per cent instead of 18 per cent. School essentials including pencils, crayons, erasers and exercise books are now fully exempt, while geometry boxes and other supplies have been reduced to 5 per cent. The textiles and handicrafts industries have benefited from correction of the inverted duty structure, with yarn and fibres now taxed at 5 per cent. The renewable energy sector too has gained, with GST on solar and wind equipment reduced to 5 per cent, a move expected to bring down the capital cost of projects and cut electricity tariffs for households and businesses. Even everyday items such as soaps, shampoos and packaged foods have been reduced to the 5 percent slab, while Railways has announced that Rail Neer water bottles will now cost Rs 14, down from Rs 15.