GST on cars, ACs, cement likely to drop: Details here

Business Aug 16, 2025

Big news for shoppers and manufacturers: India is looking to lower GST rates on things like cars, SUVs, air conditioners, and cement—possibly dropping them from as high as 50% down to 18%.
The goal? Make these products more affordable and boost sales.
If all goes well with approvals, the new rates could kick in just in time for Diwali shopping.

Proposal aims to simplify the current system

The proposal introduces a simpler two-tier system: 5% GST for essentials and 18% as the new standard rate.
Special rates will still apply to things like gold or tobacco.
Officials say this should clear up tax confusion and help both buyers and businesses in the long run—even if there's a short-term dip in government revenue.