New GST rates from tomorrow: What gets cheaper
The GST Council just approved a major tax overhaul set to kick in on September 22, 2025.
There will now be two main GST rates—5% and 18%—plus a high 40% rate for luxury and "sin" goods.
Everyday essentials like soaps, packaged foods, bicycles, and school supplies will get taxed at either 5% or zero.
Home appliances (think ACs and large-screen TVs above 32-inch) shift to the lower 18% slab, while building materials like cement and granite also get cheaper.
Cars, tractors, life-saving medicines to become cheaper
This shake-up is all about making things simpler—and more affordable.
Lower taxes on basics mean less strain on student budgets and family expenses.
Cars (especially small ones), tractors, life-saving medicines, Ayurvedic products, medical devices—even hotel stays under ₹7,500—are all getting tax cuts too.
The idea is to boost spending power for households and families while supporting jobs in housing, healthcare, travel, and agriculture.
By cutting red tape for small businesses and making essentials more accessible, the new GST rules aim to make daily life a little easier for everyone.