The complicated tax slabs that gave headaches to small traders with four slabs - 5, 12, 18 and 28 per cent, have now been rolled into two slabs-5 and 18 per cent.

The new move may help commoners with more money in hand, which the government hopes will be re-routed into the economy, giving it a boost with a revenue implication of ₹48,000 crore. According to Union Finance Minister Nirmala Sitharaman, all the decisions were made unanimously in the GST Council.

A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes. Here are the full list of items that have received a rate cut:

GST rates: Items under 0%

• 33 Life-saving drugs and medicines, Cancer medicines, Medication for rare diseases,
• Individual life insurance, Health policies
• Maps, Charts, Globes, Pencils, Sharpeners, Crayons, Pastels, Exercise Books, Notebooks, Erasers
• Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti

GST rates: Items under 5%

• Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream
• Butter, Ghee, Cheese & dairy spreads, Namkeens, Utensils
• Feeding bottles, napkins for babies and clinical diapers
• Sewing machines and parts
• Thermometer, Medical grade oxygen, All diagnostic kits and reagents, Glucometer and test strip
• Corrective spectacles
• Tractor tyres, parts, tractors
• Specified bio-pesticides, Micro-Nutrients
• Drip irrigation system and sprinklers
• Agricultural, horticultural or forestry machines for soil preparation
• Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit
• Ground-nuts, Cashew nut, roasted, salted or roasted and salted, Other roasted nuts and seeds, squash of Mango, Lemon, Orange, Pineapple or other fruits
• Chocolates and other food preparations containing cocoa
  

GST rates: Items under 18%

• Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm)
• Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm)
• 3 Wheeled Vehicles
• Motorcycles (350 cc & below)
• Motor Vehicles for the transport of goods
• Air Conditioners
• Televisions (above 32") including LED & LCD TVs
• Monitors & Projectors
• Dish Washing Machines
• Road tractors of engine capacity more than 1800 cc

Click here to view full list - https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2163555

GST Rates: Items Under 40%

• Pan masala, Cigarettes, Gutka, Chewing Tobacco, Bidis
• Caffeinated beverages, Aerated waters containing added sugar or flavour, Non-alcoholic beverages
• Smoking pipes
• Motorcycles exceeding 350 cc
• Aircraft for personal use
• Betting, casinos, gambling, horse racing, lottery and online money gaming
• Yachts
• Revolvers and pistols