The GST Council has rolled out major reforms under GST 2.0, exempting several essential goods and services from tax by moving them into the 0% GST slab. The relief covers food items, medicines, education supplies, insurance, and even certain defence and aviation imports.
Food Items at 0% GST
Daily household products such as UHT milk, pre-packaged paneer, and Indian breads including chapati, roti, paratha, parotta, khakhra, and pizza bread are now tax-free.
Medicines & Healthcare
33 life-saving drugs that earlier attracted 12% GST are now exempt.
Three specialised medicines for cancer, rare diseases, and chronic illnesses that were taxed at 5% are also at 0%.
Health insurance and life insurance policies, including family floaters and reinsurance, now attract no GST.
Education & Stationery
Students and schools will benefit as several education supplies have been exempted:
Notebooks, graph books, lab books, uncoated paper, and handmade paper
Maps, atlases, globes, topographical plans
Stationery items like sharpeners, erasers, pencils, crayons, charcoals, and tailor’s chalk
Defence & Aviation Imports
To strengthen national security and aviation, the Council approved IGST exemption on:
Parts and sub-assemblies of missiles, drones, rockets, military aircraft (C-130, C-295MW), submarines, sonobuoys, and simulators
Specialised high-performance batteries
Imports of technical documentation related to exempted goods
Polished diamonds up to 25 cents, under Diamond Imprest Authorisation
Works of art and antiques imported for exhibitions