Government slashes tax slabs with next-gen GST regime, Check full list here
The Government of India has passed out the landmark reform of the next-generation GST regimes. This included major relief in the healthcare and insurance sectors for the people.
New Delhi, 4 September 2025: In a significant boost to the financial core structure of the common citizens, the government has passed out the landmark reform of the next-generation GST regimes. This included major relief in the healthcare and insurance sectors for the people. A complete removal of GST on individual health and life insurance, which was yet carrying an 18% GST, has been announced as the biggest reform.
With this, health and life insurance have become more affordable and accessible to a broader part of society, as they have been shifted towards the zero-tax bracket. This is expected to reduce the cost of essential medical items and health-related monetary solutions as cleared by the GST Council.
Additionally, GST rates on several critical medical items have been reduced from 12% to 5%, which includes thermometers, medical-grade oxygen, all diagnostic kits and reagents, glucometers and test strips, as well as corrective spectacles.
Join PSU Connect on WhatsApp now for quick updates! Whatsapp Channel
According to PM Modi’s statement issued in a social media post, “The Union Government had prepared a detailed proposal for broad-based GST rate rationalization and process reforms, aimed at ease of living for the common man and strengthening the economy. Glad to state that @GST_Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, the middle class, women, and youth. The wide-ranging reforms will improve the lives of our citizens and ensure ease of doing business for all, especially small traders and businesses.”
Based on the essential items front, daily household items will also cost less. Several products, such as hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes, and shaving cream, will now have 5% GST, earlier from 18%. Further, butter, ghee, cheese, dairy spreads, prepackaged namkeens, bhujiya, and mixtures will now attract 5% GST. Utensils, feeding bottles, baby napkins, and clinical diapers have also become cheaper with the rate cut to 5%.
Read Also : SJVN Ltd declares Record Date for Final Dividend for FY25