· Personal Finance · 1 min read
GST 2.0: New Rates Effective from 22nd September 2025 – What Gets Cheaper and Costlier
With new rates kicking in from 22nd September 2025, daily essentials are cheaper while luxury goods will pinch your pocket. Here’s a simple breakdown of what this means for you.
India has implemented GST 2.0 starting 22nd September 2025, marking the biggest reform in the indirect tax system since GST was introduced in 2017. The changes aim to simplify tax structures, ease consumer burden, and stimulate demand, while keeping luxury consumption under higher taxation.
The Big Shift
Simpler slabs: No more juggling between 5%, 12%, 18%, and 28%. Now, just 5% and 18%, plus a 40% luxury slab.
Everyday relief: FMCG items like soap, toothpaste, biscuits, and processed food are lighter on tax.
Healthcare boost: Medical kits, spectacles, and even health insurance premiums are either cheaper or completely exempt.
Affordable rides: Small cars and bikes (under 350cc) now attract lower GST.
Luxury costs more: High-end apparel, premium cars, and sin goods have moved up the tax ladder.
What It Means for Families
For the average household, this reform is a breather. Monthly grocery bills, basic toiletries, and even your electricity-hungry appliances will hurt less. For young families planning to buy their first car or two-wheeler, the timing couldn’t be better.
👉 You can check the official GST 2.0 rate list for a full breakdown of items and slabs: NDTV GST 2.0 Updates
