- By Shreyansh Mangla
- Fri, 19 Sep 2025 05:35 PM (IST)
- Source:JND
New GST Rates: The newly announced GST reforms will come into effect from September 22. Prime Minister Narendra Modi on August 15 had announced landmark reforms in the GST rates, bringing down the taxes imposed on almost all daily-use items. The new GST rates have also brought down rates several products including small cars, bikes among other things. However, the GST rate on luxury goods or sin goods has been increased to 40 per cent from earlier 28 per cent.
Apart from the low-budget things that will become cheaper from September 22, there are a few things that will become costlier. The biggest impact from the new GST reforms will be on the food and drinks industry, as the tax increase has significantly raised their prices.
Additionally, if you or your family are planning to buy a motorcycle above 350cc, the buyer will have to pay a 40 per cent tax. Moreover, the same 40 per cent tax will be applied to products such as ships, revolvers, and helicopters. Previously, these same products were taxed at 28 per cent.
The government says that the tax increase has been placed on luxury and non-essential products to increase their revenue and make common household products cheaper. However, the average person has been warned to be aware of the new charges on drinks and bikes, which will result in a hefty fee on top of the nominal charges.
Here is a list of products that will have new rates starting September 22, 2025:
From September 22, big cars will also be charged 40 per cent GST. Even so, cars will become cheaper than before. According to reports, luxury cars so far have been subject to 28 per cent GST and a 22 per cent cess, which totals 50 per cent. From September 22, the cess has been abolished, but the GST has been increased from 28 per cent to 40 per cent. This means the rates on cars will be reduced by 10 per cent.
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It is important to note that the government decided to abolish the four tax slabs of 5 per cent, 12 per cent, 18 per cent, and 28 per cent in the GST Council meeting on September 3 and create only two tax slabs: 5 per and 12 per cent.