Prime Minister Narendra Modi to address the nation today at 5 pm

Prime Minister Narendra Modi will address the nation at 5 pm today, September 21. This comes a day before the rollout of the GST reforms announced by the Cabinet, though the subject of the Prime Minister's address is yet to be known.

The GST Council had approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22 - the first day of Navratri. Besides, a compensation cess of 40 per cent will also be levied on luxury items and demerit or sin goods.

The council abolished the 12 and 28 per cent slabs, moving about 99 per cent of goods under the 12 per cent slab to 5 per cent. From September 22, at least 90 per cent items under 28 per cent tax slab will also come down to 18 per cent bracket.

However, tobacco and related products will continue to be in the 28 per cent plus cess category.

On the GST reforms, PM Modi had said they will improve lives of citizens and ensure ease of doing business for all, especially small traders and businesses.

On Saturday, Finance Minister Nirmala Sitharaman said that GST reform is not a mere tax change but a "revolution", calling it the cenral government's "Diwali gift" to the consumers.

What gets cheaper from tomorrow

Items such as ghee, paneer, butter, namkeen, ketchup, jam, dry fruits, coffee and ice cream are set to become cheaper following GST rationalisation. Aspirational goods like televisions, air-conditioners and washing machines will also see price cuts. Several FMCG companies have already announced reductions in prices.

Medicines and medical devices

GST on most drugs, formulations and medical devices including glucometers and diagnostic kits has been reduced to 5 per cent. This will bring down the cost of medicines for the common man. The government has directed pharmacies to revise maximum retail prices or sell medicines at lower rates after factoring in GST cut benefits.

Cement sector

Home builders are expected to benefit from a sharp cut in GST on cement, reduced to 18 per cent from the earlier 28 per cent.

Automobile sector

The automobile sector is the largest beneficiary, with GST rates now 18 per cent on small cars and 28 per cent on big cars. Several car companies have already announced price reductions.

Services sector

GST on beauty and physical well-being services, including salons, barbers, fitness centres, health clubs and yoga, has been cut from 18 per cent with input tax credit to 5 per cent without credit.

Daily use items to become more affordable

Products like hair oil, toilet soaps, shampoos, toothbrushes and toothpaste will also get cheaper as tax rates are lowered to 5 per cent from the earlier 12–18 per cent. Other daily use items such as talcum powder, face powder, shaving cream and after-shave lotion will also see reduced prices, with GST cut to 5 per cent from 18 per cent.