New Delhi: After conducting the 56th Goods and Services Tax (GST) Council meeting on Wednesday Union Finance Minister Nirmala Sitharaman informed that the central government has fully exempted individual life and health insurance policies from GST. It was one of the most significant decisions taken at the 56th edition of the GST Council meeting. The Union Finance Minister confirmed that the new GST rates will be implemented from September 22. Sitharaman described the move is characterised as a structural reform instead of simply an adjustment of rates. She further stated that the government has made changes focussing at benefiting consumers and businesses alike. “Not just GST rate rationalisation this is structural reform easing compliance” FM Sitharaman said. Prime Minister Narendra Modi praised the decision and stated that these reforms will boost ease of doing business in the country. “Wide-ranging GST reforms will improve lives ensure ease of doing business especially small businesses” PM Modi said. GST Council Meeting: Major Announcements Made By FM Nirmala Sitharaman - Exemption for Insurance Policies: “Individual life insurance health policies to be exempt from GST” FM said. It simply means that people will be exempted from paying GST on premiums for life and health insurance policies. GST on Auto Parts and High-End Vehicles Sitharaman announced that GST on all auto parts will be 18 percent while motorcycles exceeding 350cc and aircraft for personal use will attract 40 percent GST. GST Rate on Tobacco and Sugary Drinks: “Special GST rate of 40 percent to be levied on pan masala tobacco products cigarettes; aerated drinks containing added sugar” she said. GST will now be charged on Retail Sale Price for pan masala gutkha cigarettes unmanufactured tobacco chewing tobacco. GST Rationalisation on Everyday Essentials: Rate have been cut on daily-use products. This includes 5 percent GST will now apply on products like - toothpaste bars bicycles tableware hair oil and soap. Zero Percent GST for UHT milk And Bread: “The reforms are structural not just rate changes” Sitharaman said. Revenue Impact: According to West Bengal Finance Minister Chandrima Bhattacharya the total revenue loss from GST rationalisation is likely to be Rs 47700 crore. Structural Reforms: The GST Council had made corrections in inverted duty structure. The corrections have reduced complexity for businesses. “These reforms are not only on rationalising rates but they are structural too. We have corrected inverted duty structure” she said. Less GST Slabs: FM announced that the number of GST categories has been decreased to make compliance easier and resolve inconsistencies within the tax system. PM Modi’s Vision Sculpted GST Cuts: “PM Modi desired to give benefit of GST cuts to people at the earliest” the Finance Minister said. She also liked reforms to PM’s vision of providing instant relief to citizens. US Tariff Turmoil: She stated that the recent 50 percent tariffs placed on Indian products by U.S. President Donald Trump did not have an impact on the decisions regarding the Goods and Services Tax (GST).