Prices of daily essentials, food products, kitchen staples, electronics, medicines, medical equipment, and even automobiles will get cheaper from today as the reduced GST rates on about 375 items come into effect.
The new GST rates come into effect from today (September 22), a move that Prime Minister Narendra Modi said will accelerate India’s growth, as he highlighted the importance of making the country ‘atmanirbhar’. Under next-generation GST reforms, prices of several items and products, including electronics, food, and automobiles, have been reduced.
As part of the GST reform, the government has now introduced only two GST slabsโ5% and 18%โinstead of four. A separate 40% tax will be levied on ultra luxury items, while tobacco and related products will continue to be in the 28 per cent plus cess category.ย Till now, Goods and Services Tax (GST) was levied in 4 slabs of 5, 12, 18, and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.
Direct relief to the middle classย ย
Essential goods like food grains, medicines, and everyday items will continue to be taxed at a lower rate of 5%, ensuring affordability for families. Meanwhile, the removal of the 12% tax rate has made many mid-range products cheaper, providing direct relief to middle-class families.ย
Finance Minister Nirmala Sitharaman believes that the new GST reforms implemented by the government will significantly reduce the tax burden. It is estimated that this will result in savings of approximately Rs 2 lakh crore for the country’s citizens.
Food and beverages become cheaper
Now, everyday food items like milk-based beverages, biscuits, butter, cereals, dried fruits, fruit juices, ghee, ice cream, jam, ketchup, snacks, cheese, pastries, sausages, and coconut water will be taxed at a lower GST rate than before. This will reduce the common man’s kitchen expenses.
Daily use items like shampoo, soap, hair oil, shaving cream, talcum powder, and face cream will now be cheaper due to reduced taxes on them.
Reduction in the prices of electronic devices
Electronic items like ACs, washing machines, TVs, and dishwashers will also be available at affordable prices. The tax on these products has been reduced due to the new GST rates.
The government has reduced the GST rate on several essential medicines and medical devices to just 5%. Pharmaceutical companies have been directed to revise their MRPs (Maximum Retail Prices) and pass on the full benefit to consumers.
Salons, barbershops, gyms, fitness centers, and yoga services will now also be charged lower GST. This will ease the burden on those using these services.
Full list of items that have gotten cheaper
| Food and Kitchen | |||
| S.No | Item | Old GST Rate | New GST Rate |
| 1. | Paneer/Chhena (Packed) | 5% | 0% |
| 2. | UHT Milk (Tetra-Pack Milk) | 5% | 0% |
| 3. | Parathas and Indian Rotis (all names)ย | 18% | 0% |
| 4. | RoG/ChapaG/Khakhra, Pizza Bread | 5% | 0% |
| 5. | Butter/Ghee/Dairy Spreads | 12% | 5% |
| 6. | Cheese/Paneer | 12% | 5% |
| 7. | Dry Fruits (Almonds, Pistachios, Hazelnuts, Dates, Figs, etc.) | 12% | 5% |
| 8. | Chocolates, Pastries, Cakes, Biscuits, Jams | 18% | 5% |
| 9. | Namkeen/Bhujiya/Mixture/Chabena (Packed) | 12% | 5% |
| 10. | Pasta/Spaghetti/Macaroni/Noodlesย | 12% | 5% |
| 11. | Corn Flakes and Other Cereal Flakes | 18% | 5% |
| 12. | Pickles | 12% | 5% |
| 13. | Fruit and vegetable juices | 12% | 5% |
| 14. | Coconut water (packaged) | 12% | 5% |
| 15. | Refined sugar and sugar cubes | 12% | 5% |
| 16. | Coffee | 18% | 5% |
| 17. | Curry paste, mayonnaise, salad dressings | 12% | 5% |
| 18. | Soups and broths (prepared/pre-mixed) | 18% | 5% |
| 19. | Yeast and baking powder | 12% | 5% |
| 20. | Preserved fish/meat (canned/prepared) | 12% | 5% |
| Beverages (non-alcoholic) | |||
| 21. | 20-liter drinking water jars | 12% | 5% |
| 22. | Plant-based milk beverages (coconut milk, almond milk, cashew milk, flax milk, rice milk, and oat milk) | 18% | 5% |
| 23. | Fruit pulp/fruit juice-based beverages (non-carbonated) | 12% | 5% |
| 24. | Milk-based beverages (milk-based drinks) | 12% | 5% |
| Personal Care (Daily Use) | |||
| 25. | Toilet soap (bar/cake), toothpaste, dental floss, toothbrush | 18% | 5% |
| 26. | Tooth powder | 12% | 5% |
| 27. | Hair oil and shampoo, talcum powder/face powder, shaving cream/aftershave/logo | 18% | 5% |
| 28 | Combs, hairpins, curlers (non-electric) | 12% | 5% |
| Household items | |||
| 29. | Feeding bottles and nipples, baby napkins, and diapers (all types) | 12% | 5% |
| 30. | Safety matches | 12% | 5% |
| 31. | Candles/handmade candles | 12% | 5% |
| 32. | Kitchen utensils (steel/aluminum/copper/brass/wood) | 12% | 5% |
| 33. | Kerosene/wood stoves (non-electric) | 12% | 5% |
| 34. | Sewing machines and parts | 12% | 5% |
| 35. | Rubber bands | 12% | 5% |
| Students and education | |||
| 36. | Exercise/Graph/Laboratory Notebook | 12% | 0% |
| 37. | Eraser | 12% | 0% |
| 38. | Textbook/Notebook Paper (Uncoated) | 12% | 0% |
| 39. | Maps/Atlases/Globes (Printed) | 12% | 0% |
| 40. | Pencils, Crayons, Pastels, Charcoal | 12% | 0% |
| 41. | Pencil Sharpener | 12% | 0% |
| 42. | Geometry/Color Box | 12% | 5% |
| 43. | Paper Boxes/Boxes (Corrugated/Other) | 12% | 5% |
| 44. | Paper Tray | 12% | 5% |
| Medicines and medical devices | |||
| 45. | Medicines for various rare diseases and cancer | 5โ12% | 0% |
| 46. | All (other) medicines and drugs (including Ayurveda, Unani, Siddha, and homeopathy) | 12% | 5% |
| 47. | Medical oxygen | 12% | 5% |
| 48. | Diagnostic kits and diagnostic reagents (chemicals), glucometers and test strips | 12% | 5% |
| 49. | Thermometers (medical) | 18% | 5% |
| 50. | Medical/surgical instruments, surgical rubber gloves | 12% | 5% |
| Farmers and irrigation | |||
| 51. | Tractors (excluding road tractors for semi-trailers with engine capacity exceeding 1800 cc) | 12% | 5% |
| 52. | Tractor tires/tubes | 18% | 5% |
| 53. | Tractor parts (brakes, gearboxes, clutches, wheels, steering, radiators, silencers, hydraulics, fenders/hoods, etc.) | 18% | 5% |
| 54. | Harvesters/threshers and parts | 12% | 5% |
| 55. | Soil preparation and wagon machinery | 12% | 5% |
| 56. | Poultry/beekeeping machinery | 12% | 5% |
| 57. | Sprinklers/drip irrigation and nozzles | 12% | 5% |
| 58. | Hand pumps (other) | 12% | 5% |
| 59. | Composing machines | 12% | 5% |
| Vehicles and mobility | |||
| 60. | Two-wheelers (bikes/scooters โค350cc) | 28% | 18% |
| 61. | Small cars (โค1200cc petrol / โค1500cc diesel; โค4m) | 28% | 18% |
| 62. | Tri-wheelers (automobiles) | 28% | 18% |
| 63. | Passenger vehicles (10+ seats) | 28% | 18% |
| 64. | Engine parts, ignitions, pumps (vehicles) | 28% | 18% |
| 65. | Bicycles and bicycle parts | 12% | 5% |
| 66. | Auto parts | 28% | 18% |
| Construction materials | |||
| 67. | Cement | 28% | 18% |
| 68. | Marble/Travegrain Blocks, Granite Blocks, Sand-Lime Bricks | 12% | 5% |
| 69. | Parcel Boards Made from Agricultural Waste (Bagasse, Rice Husk, Jute, Sisal, etc.) | 12% | 5% |
| 70. | Bamboo Flooring/Carpentry Room | 12% | 5% |
| 71. | Packing Cases and Pallets (Wood) | 12% | 5% |
| Consumer Electronics and Appliances | |||
| 72. | Television Sets (LCD/LED) (>32′) | 28% | 18% |
| 73. | Monitors and Projectors (Non-TV) | 28% | 18% |
| 74. | Air Conditioners | 28% | 18% |
| 75. | Dishwashers | 28% | 18% |
| 76. | Solar Water Heaters and Systems, Solar Cookers | 12% | 5% |
| Toys, Games, and Handicrafts | |||
| 77. | Toys such as tricycles, scooters, pedal cars, etc. (including their parts and accessories) [other than electronic toys] | 12% | 5% |
| 78. | Wooden/metal/textile dolls and toys (Channapatna, Thanjavur, Sawantwadi, etc.) | 12% | 5% |
| 79. | Board games (Ludo/Carrom/Chess/Playing Cards) | 12% | 5% |
| 80. | Sports equipment other than items and equipment for general physical exercise | 12% | 5% |
| 81. | Handicrafts: Sculptures and statues (wood/stone/metal) and lamps (including Panchaloga) | 12% | 5% |
| 82. | Brass/copper/aluminum artifacts | 12% | 5% |
| 83. | Paintings, sculptures | 12% | 5% |
These items have become more expensive
The government has imposed a higher GST rate of 40 percent on luxury and harmful goods such as pan masala, tobacco, aerated drinks, expensive cars, yachts, and private planes. These items have been classified as “sin goods” and luxury goods, with higher taxes being imposed to curb their consumption.
Also Read:ย GST 2.0 to take effect from today: Full list of what gets cheaper
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