• By Soumyaroop Mukherjee
  • Sun, 21 Sep 2025 03:33 PM (IST)
  • Source:JND
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GST 2.0: The new Goods and Services Tax slab, which was decided as part of the new GST council meeting earlier this month, is set to kick in from tomorrow, September 22. As part of the GST reforms, the four existing tax slabs will be replaced by the following tax slabs: 5 per cent on essential goods, 12 per cent on other goods, and 40 per cent ‘sin tax’, which is levied on alcohol, tobacco, betting, and online gaming.

As the new GST rates kick in tomorrow, the prices of many goods will change. Here is a list of goods that will become cheaper and costlier post the new price slabs.

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Goods Which Will Become Cheaper

Essential Goods

For the middle class, the change in prices on essential goods will be a huge addition to the monthly savings. Most of the goods that are supposed to become cheaper under the new GST rates are essential goods:

  • Toothpaste, soaps, and shampoos

  • Packaged foods like biscuits, snacks, and juices

  • Dairy items such as ghee and condensed milk

  • Bicycles and stationery

  • Apparel and footwear below a certain price point (up to Rs 2500)

Household Appliances And Automobiles

Items that currently fall in the 28 per cent bracket are expected to come down to 18 per cent, which can lower prices by 7-8 per cent. Besides household appliances, smaller vehicles are also expected to come down from 28 per cent to 18 per cent. This includes:

  • Air conditioners

  • Refrigerators and dishwashers

  • Large-screen televisions

  • Cement (important for construction and housing)

  • Small cars (engine size under 1,200cc) could see GST cut from 28 per cent to 18 per cent.

  • Two-wheelers, a backbone of Indian mobility, may also move to a lower slab.

Insurances:

Currently, insurance premiums attract 18 per cent GST, making them relatively costly. Under GST 2.0, premiums may be moved to a lower slab. However, this will be exempted in some cases.

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Goods Which Will Stay Costly

  • Tobacco products, alcohol, and pan masala

  • Online betting and gaming platforms

  • Petroleum products remain outside GST for now, hence fuel prices will not see any change.

  • Luxury items like diamonds and precious stones will retain higher tax rates.

  • Luxury cars are also to be taxed under the 40 per cent slab.