GST Reform Meet: Here’s What Gets Cheaper And What Gets Costlier, Details Here

As the GST council meet has come to an end, one thing that we all hover about is what gets cheaper and costlier? Which is quite human. The meeting scheduled for two days – September 3 and September 4. In the meet the council decided to eliminate the 12% and 28% GST slabs in foavour of 18% and 5% with an addition of 40% slab on sin and luxury goods. 

Essentials and Groceries Get Cheaper Under New GST

• Nil GST:

Ultra-high temperature milk

Paneer

Parathas

Pizza bread

Khakhra

Roti

• 5% GST (reduced from 12–18%)

Butter

Ghee

Cheese

Jams

Sauces

Soups

Pasta

Namkeens

Confectionery

• Dry Fruits at 5%:

Almonds

Pistachios

Cashews

Dates

• Other items at 5%:

Citrus fruits

Healthcare Items See Major Tax Relief

• Nil GST (tax-free):

Life-saving drugs:

Agalsidase Beta

Onasemnogene

Daratumumab

Alectinib

• 5% GST (reduced from 12–18%):

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Most medicines

Diagnostic kits

Bandages

Thermometers

Oxygen supplies

• Medical Devices:

Shifted to lower rates, now cheaper for patients and hospitals

GST Reduced on Personal Care and Consumer Goods

Personal care items such as hair oil, shampoos, soaps, toothpaste, shaving products, talcum powder, toothbrushes, candles, and safety matches now attract only 5% GST. Stationery items including notebooks, pencils, sharpeners, and erasers also became cheaper.

Toys, sports goods, handicrafts, and bamboo or cane furniture shifted into the 5% category as well. The Council said that cutting GST on these goods would support students, households, and artisans.

By bringing personal care and consumer goods under lower tax rates, the Council ensured direct relief to consumers in their everyday purchases.

Transport and Housing Materials See GST Cuts

18% GST (reduced from 28%):

Cement

• Reduced GST Slabs:

Tractors

Bicycles

Motorcycles below 350cc

Small cars (petrol/diesel engines under 1200–1500cc, length under 4 metres)

Electric vehicles

Hybrid vehicles

Ambulances

• 5% GST:

Marble

Granite blocks

Eco-friendly building materials (e.g., particle boards made from crop residue)

Must Read: 40% GST’ Trends On X! GST On Cigarettes, Alcohol, Gambling Surges

Sin Goods and Luxury Products Become Costlier

The Council raised GST on tobacco and luxury goods. Pan masala, gutkha, chewing tobacco, and cigarettes now attract 40% GST, up from 28%.

Carbonated drinks, caffeinated beverages, and fruit-based fizzy drinks moved to the 40% slab as well. Luxury vehicles such as SUVs, large cars above 1200cc or 1500cc engines, motorcycles above 350cc, yachts, private aircraft, revolvers, and pistols also shifted into the 40% bracket. Coal, lignite, and peat saw an increase from 5% to 18%.

Biodiesel not blended with diesel moved to 18% from 12%. High-value apparel, cotton quilts, and paper products also shifted to 18%.

Also Read: Gold And GST Revamp 2025: What Should Every Buyer Know Before the Festive Season? Will GST Changes Impact Your Next Purchase?