New Delhi: Prime Minister Narendra Modi promised a Diwali gift to his countrymen from the ramparts of the Red Fort. Thereafter, Finance Minister Nirmala Sitharaman announced a rate cut at the 56th GST Council Meeting. The rate cut will make many essential items cheaper during the festive season. Since the rates are set to come into effect on September 22, the rate cut effects will take place after the designated timeline. Currently, many companies have reduced their prices even before September 22.

In the festive season of Diwali, households buy brooms for cleaning purposes on account of Diwali and Dhanteras. GST on brooms is levied in different categories, mainly dependent on the type of broom and material used in it. The brooms made from plants like coconut or bamboo receive a different GST rate. Brooms made from plastic are classified in a different slab.

Broom to get cheaper

The HSN code for brooms is 9603. Previously, the code attracted a 12 percent GST rate. Now that this slab is abolished after the new GST reforms, it will attract a 5 percent GST from September 22nd. This means that brooms are set to become cheaper than last year, as the tax on them got reduced. Furthermore, brooms made with a mixture of certain materials were taxed under different slabs, viz., 12 percent and 18 percent. However, in the GST reforms, the government has placed them under the 5 percent slab.

Lesser GST on Sonpapdi

In the 56th GST Council, the government abolished two different slabs of 12 percent and 28 percent. As a consequence, 99 percent of essential goods are now taxed under the 5 percent tax slab. Additionally, the Finance Minister granted exemption to the sweets and confectionary industry. Indian sweets, sugar confectionery, jams, jellies, etc. are now set to attract a 5 percent GST rate. Earlier they were taxed at the rate of 18 percent. Other popular Indian sweets have also been placed under the 5 percent tax slab. There are no certain instructions regarding Sonpapdi. However, it is believed that it is set to attract a 5 percent tax.

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