GST 2.0: What Gets Cheaper And Costlier After September 22 | FULL LIST Of Items
GST 2.0: From September 22, 2025, India enters a new phase of indirect taxation with the rollout of new GST regime, simplifying rates into two main slabs of 5% and 18%, alongside a 40% “sin tax” on luxury and harmful goods. Essential items such as toothpaste, soaps, packaged foods, dairy products, bicycles, and stationery are now under the 5% slab. Household appliances and electronics, including refrigerators, air conditioners, and televisions, move to the 18% slab. The automobile sector sees a boost with small cars and two-wheelers taxed lower, increasing affordability and demand. Financial services and insurance premiums may also benefit from reduced taxation. On the other hand, sin goods such as tobacco, alcohol, pan masala, online betting, and luxury items remain heavily taxed at 40%, while petroleum products are unchanged. Overall, GST 2.0 aims to streamline taxation, improve compliance, and provide direct financial relief to consumers while maintaining high rates on harmful and luxury items.
Here is what becomes cheaper and costlier after the GST 2.0 rollout:
Everyday Essentials Become Cheaper Under GST 2.0
Toothpaste, soaps, shampoos, packaged biscuits, snacks, juices, ghee, and condensed milk now move to the 5% GST slab, reducing household expenses. Affordable bicycles, stationery, and apparel under a certain price are also included. Consumers can expect noticeable savings on daily-use essentials from September 22, 2025.
Packaged Foods Dairy Will Become Cheaper After September 22 As GST 2.0 Rolls Out
Popular packaged foods, including biscuits, snacks, and juices, along with dairy items like ghee and condensed milk, benefit from the new 5% GST slab. This move lowers prices for households and makes everyday grocery shopping more budget-friendly.
Personal Care Items To Become Cheaper After GST 2.0
Toothpaste, soaps, shampoos, and other essential personal care products now see reduced GST rates. Middle-class households can save on routine purchases, making hygiene and self-care more economical under the new taxation regime.
New GST: Electronics Household Appliances Get Cheaper
Large appliances such as air conditioners, refrigerators, dishwashers, and televisions, previously taxed at 28%, move to the 18% slab. Cement for construction is also included. Prices are expected to drop by 7-8%, making home upgrades more affordable for middle-class families.
GST 2.0 Reduces Prices Of Automobiles Including Small Vehicles
Small cars under 1,200cc and two-wheelers benefit from lower GST rates, falling from 28% to 18%. Luxury cars and SUVs remain heavily taxed. The change is likely to revive sales in the automobile sector and boost consumer demand for affordable mobility options.
Lower GST on Insurance Premiums Will Make These Services Cheaper
Insurance premiums and financial services may see reduced GST rates or exemptions. This change enhances accessibility to life and health insurance, promoting financial security for middle-income households across India.
Sin Tax on Tobacco Alcohol Gaming Will Make These Costlier Under New GST Regime
Tobacco, alcohol, pan masala, and online betting platforms are taxed at 40% under the new “sin goods” bracket. These items remain costly to discourage consumption while generating higher revenue for the government.
Luxury Goods Fuel Prices Unchanged Under GST 2.0 And Will Remain Costlier
Diamonds, precious stones, and other luxury items retain high taxation. Petroleum products remain outside GST, meaning fuel prices are unaffected by the GST 2.0 rollout. Consumers should not expect relief in these sectors.
