New GST Rates 2025 LIVE: GST 2.0 Is Here! Discover What’s Getting Cheaper, What’s More Affordable, And Where Are The Rate Cuts Starting Today?

GST 2.0 Brings Relief to Farmers

Smt @nsitharaman greeted and interacted with consumers and shopkeepers in Laxmi Nagar, New Delhi, as the #GSTBachatUtsav commenced today.

Navin Goyal, VP and Director, Pune Dry Fruit Association on GST 2.0 reforms coming into effect today

“More than 200 commodities will get cheaper. I congratulate PM Modi. His government thinks about ‘Sabka Saath, Sabka Vikas’ and the Bihar government does the same.”  BJP MP Ravi Shankar Prasad, Patna, Bihar, on GST 2.0 reforms’ implementation

Potluri Bhaskara Rao, President of AP Chambers, Vijayawada, Andhra Pradesh on GST implementation

“You can see the enthusiasm here. There is a smile on the faces of every customer and shopkeeper in every market. PM Modi has brought this direct benefit to the 140 crore people of the country through GST reforms. This is a big Diwali gift for all of us and the benefits will reach all the people of the country directly…We thank the Prime Minister…” -Delhi CM Rekha Gupta on implementation of GST reforms, Source: ANI

In this festive season, everyone will share sweetness. I extend my heartfelt congratulations to all on the next generation of GST reforms. These reforms will accelerate India’s growth story, make business easier, and ensure that every state becomes an equal partner in the journey of development –  PM Modi On GST 2.0

•    Instant relief: Middle-class households will get an advantage from lower food prices, FMCG, electronics, insurance, and healthcare.
•    Increase in demand: Lower rates anticipated to outgrowth consumer spending, mainly during the festive season.
•    Ease on Inflation: Expected discount of 0.5–0.6% points in yearly inflation, mostly through food & beverages.
Revenue Implications and State Concerns in GST 2.0
•    Temporary revenue losses for states: Projected annual loss varies from ₹85,000 crore to ₹2 lakh crore, Karnataka may get ₹15,000 crore deficit 
•    Reimbursement mechanism demands: States ruled by the opposition parties call for a renewed tactic compare to the original compensation period (ended June 2022)
•    Medium-term revival: Enhanced compliance and improved consumption may benefit states recover losses.

•    Ordinary consumer products (staples, packaged food, personal care) to shift from 12% to 5%.
•    Electronics and home appliances (ACs, TVs, fridges, washing machines) changing from 28% to 18%.
•    Automobiles (small cars), textiles, bicycles, cement expected taxed at 18% in place of 28%.
•    Health & life insurance, medicines (together with cancer drugs), and education could alter to the lower block or be relieved.
•    Comprehensive addition for goods like toothpowder, umbrellas, stationery, and more in the 5% bracket.
•    Possible Price Increases or Higher Tax Exposure.
•    Luxury goods in addition to “sin” items (tobacco, automobiles directly above a certain threshold) taxed at 40%.
•    Quality EVs, gambling, possibly online gaming to drop under 40%.
•    Fuel-derivatives and coal items may perceive advanced taxation if cess is detached .
•    Clothing directly above ₹2,500 could shift up from 12% to 18% .
Effects on the General Public and Economy by GST 2.0