Goods and Services Tax (GST) improvements are going to be implemented from 22 September. Earlier, Prime Minister Narendra Modi while addressing the nation described it as a “festival of savings”. Many festivals are coming, in which people make big shopping. Many festivals including Navratri, Dhanteras and Diwali are coming close. The changes in GST are considered to be a big relief for the people. However, it is also important to understand the special changes made in GST, what will be cheap and what you may have to pay.
The 56th meeting of the GST Council led by the Central Government was held on 3 September 2025. After this meeting, it was decided to amend the GST. This change will be applicable from 22 September. Under the new GST, goods sold in the country are now taxed at a rate of 5% or 18%. Earlier, four GST slabs were installed with 5%, 12%, 18% and 28% GST.
Now only the essential items like milk, curd, water etc. are in the slab of 5%. Luxury items are in a slab of 18%. Tobacco, alcohol, betting and online gaming are in a slab of 40%. This decision of the GST Council will reduce the prices of necessary goods, but some items will also become expensive.
Are they getting affordable?
Earlier, basic items and domestic products used to levy 12% tax, but now many of these items have been laid into a slab of 5%. This can make packaged foods such as toothpaste, soap, shampoo, biscuits, snacks and juices, as well as dairy products, bicycles and stationery cheap. In addition, clothes and shoes will also be available at a lower price than a certain price, and their prices are also going to decrease.
Some items were earlier levied 28% tax, which has been reduced to 18%. This change in this category is also expected to make electronic equipment cheap. Their prices will now be reduced by 7 to 8 percent. These include air conditioner, refrigerator, dishwasher, large -screen TV, cement and many others.
In addition, GST has been reduced from 28% to 18% on small cars (whose engine is less than 1,200 cc). This will reduce the prices of cars. Those who buy two -wheelers will also get relief. However, those who buy big luxury cars and SUVs will be taxed more. Earlier, there used to be 18% GST on insurance premiums, but it has been kept low in the new GST slab and in some cases it has been forgiven. It is a matter of relief for the people. It is associated with the common man and his health, and the public will directly benefit.
Will it be more expensive?
Not everything will be cheaper under GST 2.0. The government has clarified that 40% of the goods under “sin tax” will become more expensive. The items that are expected to be more expensive include tobacco products, alcohol and paan masala. Online betting and gaming platforms are also becoming expensive.
However, petroleum prices affect every item, and the products associated with petroleum are outside the purview of GST. Therefore, there will be no reduction in the prices of petrol, diesel and other fuels.