GST overhaul kicks in: Your groceries, medicines, cars now cheaper
Big changes kicked in today (September 22, 2024) with India's new GST rules—essentials like groceries, medicines, and clothing now have either 0% or 5% GST, while most other goods sit at 18%.
Over 375 everyday items are cheaper, and average grocery bills have dropped by about 13%.
Cars, ACs, TVs now cost less
If you're eyeing a new ride or gadget, things just got friendlier for your wallet.
Small cars are now around ₹70,000 cheaper; motorcycles and scooters up to 350cc cost about ₹8,000 less. Tractors get a price cut of ₹40,000 too.
Big TVs and air conditioners are down by ₹3,500 and ₹2,800 respectively thanks to lower taxes.
Insurance premiums no longer carry GST
Life and health insurance premiums no longer carry GST—so that's up to an extra 18% saved right there.
Most products that used to be taxed at 12% now see just a 5% rate; nearly all those at the old steep 28% rate drop to a more manageable 18%.
Ultra-luxury goods face higher taxes (40%), but for most households it's good news: PM Modi calls it "GST Bachat Utsav," estimating families could save up to ₹2.5 lakh crore every year.