GST Tax Cuts Explained – From September 22, 2025
GST Revamp: What Gets Cheaper, What Gets Costlier; Industry Reacts
The government has cut GST rates to make things cheaper for everyone. Now there will be two main tax rates, 5% and 18%, and some items will have no tax at all.
Everyday Items
Things like soap, shampoo, toothpaste, kitchen tools, bicycles, butter, snacks, and juices will cost less with 5% GST.
Important Food
Food like milk, paneer, roti, chapati, and paratha will have no GST.
Health & Insurance
Health and life insurance will have no GST.
Farm & Handmade Goods
Tractors, farm tools, and handmade items will have 5% GST.
Appliances & Small Vehicles
Air conditioners, TVs, dishwashers, and small cars will have 18% GST.
Luxury Items
Expensive cars and tobacco will have 40% GST.