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GST 2.0 Rollout Tomorrow, Sept 22: Full List Of What Gets Cheaper, What Costs More
GST 2.0 Rollout Tomorrow, Sept 22: Full List Of What Gets Cheaper, What Costs More
GST Reforms 2025 List: Goods and Services Tax (GST) reforms are set to be implemented from September 22, marking a historical shift in the country's indirect taxation with two slabs of 5 per cent and 18 per cent and a special slab of 40 per cent for sin goods.
The GST council, led by Finance Minister Nirmala Sitharaman, early in September announced a major overhaul in the indirect taxation system, aimed at simplifying the slabs, boosting the consumption and rationalizing the rates.
Under the new plan, the government is set to merge the four slabs into two main categories with an additional “sin tax" bracket:
This consolidation is expected to make tax compliance easier and also reduce prices on many items currently taxed at 12% or 28%.
Consumers will see essential items becoming cheaper from September 22, as several sectors from FMCG to Auto have announced earlier to pass on the benefits of lower GST to them.
Everyday Essentials: Many household products, which are currently taxed at 12% are expected to move down to the 5% slab. This includes:
Not everything will get cheaper under GST 2.0. The government has made clear that certain goods will face higher taxes under the 40% “sin tax" slab.
Boosting Consumption: With prices dropping on essentials, appliances, and vehicles, households will likely spend more. This could deliver a strong push to consumption just before the festive season.
Market Sentiment: The stock market has already reacted positively. The Nifty 50 surged more than 1% in the immediate aftermath of the announcements. Auto and consumer goods stocks saw the sharpest gains.
Growth Outlook: Economists estimate that the new GST structure could add 0.7–0.8 percentage points to India's GDP growth by stimulating demand and easing compliance burdens.
Everyday Impact: For consumers, the changes will show up in three ways:
Cheaper shopping baskets – Everyday items like soaps, snacks, and packaged food cost less.
Big-ticket savings – Cars, ACs, and TVs become more affordable, especially for first-time buyers.
Financial relief – Lower insurance premiums ease monthly household budgets.
For businesses, especially small and medium enterprises, the simpler tax structure reduces compliance headaches, making it easier to operate.
Source: News18
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