GST 2.0 Rollout Today, Full List: What Becomes Cheaper and Costlier

GST 2.0 Rollout Today, Full List of What Gets Cheaper and What Costs More in India

The much-anticipated GST 2.0 rollout takes effect today, September 22, 2025, marking a historic shift in India’s indirect taxation system. The Goods and Services Tax (GST) reforms consolidate the existing four slabs into two main rates—5% for essential goods and 18% for most other products and services—with a special 40% “sin tax” for luxury and harmful items. Announced earlier this month by Finance Minister Nirmala Sitharaman, these reforms aim to simplify tax compliance, boost consumption, and rationalize rates across sectors.

Consumers can expect immediate relief on everyday essentials as multiple products move to lower tax slabs. Items such as toothpaste, soaps, shampoos, biscuits, packaged snacks, juices, ghee, condensed milk, bicycles, stationery, and affordable apparel and footwear will see their GST reduced to 5%. For middle-class households, these reductions translate into tangible monthly savings, making daily shopping less of a financial burden.

Household appliances and electronics are also set to become more affordable. Products previously taxed at 28%—including air conditioners, refrigerators, dishwashers, large-screen televisions, and cement—are likely to be moved to the 18% slab. This reduction of up to 7-8% could significantly benefit India’s growing middle class, encouraging purchases of essential electronics and boosting sectors tied to construction and housing.

Read more: Trump Gold Card: Application Fees, Eligibility Criteria, and Step-by-Step Guide to Apply

The automobile sector stands to gain as well under GST 2.0. Small cars with engines under 1,200cc may see GST fall from 28% to 18%, and two-wheelers could also benefit from lower taxes. Luxury cars and SUVs will continue to attract higher rates, while affordable vehicles become more accessible to a wider audience. Reduced tax rates may revive demand for small cars and motorcycles, benefiting auto manufacturers such as Maruti Suzuki, Hyundai, and Tata Motors.

Insurance and financial services are another area where consumers may feel relief. Currently, insurance premiums attract an 18% GST, making them expensive for many households. Under the new regime, certain insurance products could see lower rates or even exemptions. This change can improve financial security for middle-income families, increasing coverage and reducing vulnerability to life or medical risks.

However, not all products will become cheaper. Items classified as “sin goods” will now attract a 40% GST. These include tobacco products, alcohol, pan masala, and online betting and gaming platforms. Petroleum products remain outside the GST regime, meaning fuel costs will not decrease, and luxury items like diamonds and precious stones will continue to face high tax rates.

Rsead more: Trump Gold Card: Application Fees, Eligibility Criteria, and Step-by-Step Guide to Apply

The GST 2.0 reforms are expected to have a positive impact on India’s economy. Lower prices on essentials, electronics, vehicles, and insurance are likely to boost household consumption, providing a significant push just ahead of the festive season. Stock markets reacted positively to the announcement, with the Nifty 50 gaining over 1% immediately. Analysts estimate that the new GST structure could contribute 0.7–0.8 percentage points to GDP growth by stimulating demand and reducing compliance burdens.

For everyday consumers, GST 2.0 means cheaper shopping baskets, lower costs for big-ticket items, and financial relief from reduced insurance premiums. For businesses, especially small and medium enterprises, the simplified tax structure reduces compliance challenges and makes operations more efficient. Today’s rollout signals a transformative step toward a more streamlined, consumer-friendly taxation system.

We’re now on WhatsApp. Click to join. 

Like this post?
Register at One World News to never miss out on videos, celeb interviews, and best reads.