GST 2.0 New Rate/Slab List 2025, Check Price Cut Benefits, Price Reduction on Bikes, Cars, Gold, Milk: The GST reforms (GST 2.0), which will come into effect from September 22, 2025, will have only two tax slabs – 5% and 18%. Sin goods such as alcohol, tobacco, and online gaming will be taxed at 40%. Learn which items will be affected, which items will become cheaper, and how the middle class will benefit from these changes.
New GST Rate List 2025 : The new GST reforms will come into effect across the country from September 22, 2025, the first day of Navratri. Developed under the leadership of Prime Minister Modi and Finance Minister Nirmala Sitharaman, this change is considered a landmark step in India’s indirect tax system. Instead of the current four tax slabs, there will be only two main rates – 5% and 18%. A special tax slab of 40% will apply to “sin goods” such as alcohol, tobacco, betting, and online gaming.
This reform is expected to bring significant relief to the middle class. The FMCG, auto, and several other sectors have indicated that the benefit of lower taxes will be passed on directly to consumers. It is expected that this will boost consumption and generate additional revenue of up to ₹2 lakh crore for the economy. In this live blog, we will tell you which items have become cheaper, which items will still be subject to higher taxes, and how this will impact your daily expenses.
Farmers, consumers, shopkeepers welcome new GST rates, say it will put more money in their pockets
The new Goods and Services Tax (GST) slab implementation came into effect on Monday (September 22, 2025), with citizens from across the national capital sharing their opinions on the changes.
In Delhi, Ravi Shankar Kumar, a resident, said, “There are several benefits for middle-class families. Be it ghee, butter, milk or ice cream, the prices have gone down. We will have some benefits in terms of what we spend in a month on dairy products.”
Another consumer, Sahil, also welcomed the move, saying, “Rates of ice cream, butter and other milk products have reduced. It is a good step by Modi.”
VK Baghel, another Delhi resident, stated, “It starts today, then we will see how much cheaper things actually get. Milk prices have not gone down, but for other products, when people buy, then we will know the impact.”
From Ayodhya in Uttar Pradesh, consumer Narsingh Pathak, explaining the benefits, shared, “It is a very good decision. It is also beneficial for the automobile sector. Those who had to pay up to Rs 1 lakh in tax to buy small cars will greatly benefit, as they will now be able to save up to Rs 80,000. The price of motorcycles will also reduce by around Rs 35,000. Diabetes and cancer medicines will also become cheaper.”
A farmer in Aligarh, Uttar Pradesh welcomed the slashing of GST Rates, saying that this would impact the prices of farm equipment like tractors.
“Earlier the GST used to be in 4 slabs and is now in 2. This will benefit farmers in the long run because Rs 50 per bag has been reduced on fertilizers… There will be a difference of Rs 40-50 thousand when we buy tractors which is beneficial for us. We welcome this move… Due to the reforms, every section of the society will benefit,” he said.
BJP leader Kesavan lauds PM Modi for “monumental” GST reforms
As the Goods and Services Tax (GST) reforms come into effect on Monday, BJP leader CR Kesavan lauded Prime Minister Narendra Modi while hitting out at the INDIA bloc, saying their motive is “Parivar Nirbhar Bharat”.
Mr. Kesavan referred to the GST reforms as a “monumental triumph” and hailed PM Modi’s call for self-reliance.
He told ANI, “GST reforms are a monumental triumph for our cooperative federalism and parliamentary democracy. Prime Minister Modi Ji’s clarion call for a Swadeshi revolution and his nationalistic vision of self-reliance have inspired a new dimension to the GST. Go Swadeshi today, go Swadeshi tomorrow.”
“When it comes to Bharat’s future and our people’s welfare, Prime Minister Modi thinks at least 50 years ahead. While the Congress and the INDI bloc’s only motive is Parivar Nirbhar Bharat, the Prime Minister has given us a lofty vision and goal of an Atmarnirbar Bharat,” he added.
Domestic consumption themes respond to potential big boost to consumption, says Vijayakumar
“The market is likely to witness a dualistic behaviour today with the IT sector getting impacted by the H-1B visa issue and the domestic consumption themes responding to the potential big boost to consumption coming from the lower GST rates kicking in from today,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
India to enter new era of taxation: Mohan Charan Majhi
Odisha Chief Minister Mohan Charan Majhi said that the transformative reforms in the tax structure places people at the centre of governance.
He said, “Odisha expresses its heartfelt gratitude to Prime Minister Narendra Modi for this visionary and transformative reform that truly places people at the centre of governance.” Mr. Majhi said this after Prime Minister Narendra Modi, in an address to the nation, said a “GST savings festival” will begin from the first day of ‘Navratri’ on Monday, which, coupled with the income tax exemption, will be a “double bonanza” for most people.
“From tomorrow, India enters a new era of simpler, fairer, and more transparent taxation. By easing compliance, empowering MSMEs, creating jobs, boosting consumption, and promoting Swadeshi initiatives, these reforms will directly benefit citizens and strengthen the nation’s economy,” Mr. Majhi said in a post on X. — PTI
New GST rates take effect September 22: Navigate GST 2.0 with our guide and interactive dashboard
The Goods and Services Tax (GST) is set for its most significant revamp since 2017. Beginning September 22, 2025, the country will adopt a simplified two-tier tax system. The majority of goods and services will be taxed at 5% and 18%. A 40% tax will be levied on ultra luxury items.
The decision, taken at the 56th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman, aims to make taxation more transparent and easier to comply with.
GST reforms: New Goods and Services Tax to take effect from September 22: All you need to know | Interactive Dashboard
GST reforms impact: India is all set to have a simplified two-slab GST structure of 5% and 18% from September 22, 2025.
What essential products are cheaper and costlier after GST rationalisation?
The Goods and Services Tax Council approved rate cuts for several food products, consumer electronics, products in the agriculture sector, renewable energy, textile, health and more on Wednesday (September 3, 2025). After the rationalisation, the GST system is now made of two rates – 5% and 18% – down from the four original rates of 5%, 12%, 18% and 28%. Besides the two rates, some products like sin goods and luxury goods are taxed at 40%. Revenue from these sectors will help support any shortfall in tax revenues to the States.
What essential products are cheaper and costlier after GST rationalisation?
GST overhaul aims for benefits to the ‘common man’ with rate cuts in essentials, some luxury goods taxed at 40%
GST reforms reshape construction
The recent GST reforms from the 56th Council meeting mark a watershed moment for the Indian construction industry, which has long struggled with complex tax structures and rising material costs. Prima facie, these reforms, effective as of September 22, offer significant potential for growth. However, their success will depend on how effectively we implement them and how transparently the benefits are distributed throughout the supply chain.
GST reforms reshape construction
Recent GST reforms in Indian construction industry offer potential growth, but success depends on effective implementation and transparent distribution.
Revised GST rates from September 22 has a West Bengal influence, says Union Finance Minister
Highlighting that the second generation GST reforms will boost the economy by increasing demand, Union Finance Minister Nirmala Sitharaman on Thursday (September 18, 2025) said that the determination of September 22 as the date when revamped taxes will come into effect has a very strong influence on West Bengal.
“I am happy to say that the determination of 22nd September as the implementation date for the next generation GST reforms was largely influenced by (Durga) Puja. The Shubh Mangal Diwas when the revamped GST comes into effect coincides with the first day of Navratri, the day after Mahalaya. There is, therefore, a strong influence of Bengal in this decision-making,” Ms. Sitharaman said at an event in Kolkata.
Revised GST rates from September 22 has a West Bengal influence, says Union Finance Minister
Union Finance Minister announces second generation GST reforms to boost economy, influenced by Durga Puja in West Bengal.
Goa committed to strengthening MSMEs under new GST reforms: Sawant
Goa Chief Minister Pramod Sawant has welcomed the launch of the next-generation GST reforms by Prime Minister Narendra Modi, saying the initiative would strengthen India’s journey towards an Atmanirbhar Bharat 2.0.
In a post on X on Sunday, Mr. Sawant said the Prime Minister had urged states to strengthen the ecosystem for micro, small and medium enterprises (MSMEs), build infrastructure to attract investment and enhance manufacturing competitiveness with the vision of “Vocal for Local, Think Global”.
“Goa is fully committed to this mission — modernising infrastructure, simplifying processes and empowering our entrepreneurs so that Swadeshi products shine proudly in India and across the globe,” the CM said.
How is the GST structure being simplified? | Explained
In his Independence Day speech, Prime Minister Narendra Modi announced a number of reforms, among which was a “Deepavali gift” of next-generation reforms to GST. In the days that followed, the government made clear what it was proposing: reducing the number of slabs in GST, and moving most items to lower rates.
The GST currently has at least seven different rates: 0.25%, 3%, 5%, 12%, 18%, 28%, and a compensation cess levied on the items in the 28% slab. The Union government proposed to reduce these to four: a rate of less than 1% for the items currently in 0.25% and 3% (diamonds, semi-precious stones, jewellery, and precious metals), 5%, 18%, and 40%. As per the proposal, 99% of the items currently in the 12% slab would move to 5%, and 90% of the items in the 28% slab would move to 18%. The remaining items in the 28% slab — mainly ‘sin’ goods and services such as tobacco, cigarettes, and online gaming — would move to a higher tax rate of 40%.
However, the thrust of the change is to ensure that vast majority of items would be in just the two slabs of 5% and 18%.
How is the GST structure being simplified? | Explained
GST Council accepts Union government’s proposal to simplify GST structure, reduce tax rates, and rationalize slabs for economic growth.
Be part of efforts for developed, self-reliant India: PM Modi
Greeting people on the first day of Navaratri, Prime Minister Narendra Modi on Monday said the auspicious period is special this time as it will render the mantra of ‘swadeshi’ a new energy along with the “GST-saving festival”.
He called upon people to be part of a collective effort to realise the resolve of developed and self-reliant India.
The Prime Minister wished people good fortune and health during the festive period.
Reduced GST rates on a vast number of items will be effective from Monday, which Mr. Modi had likened to a saving festival during his address to the nation on Sunday. Urging people to buy indigenous products, he had said ‘swadeshi’ will render strength to the country’s prosperity in a similar way it powered India’s freedom movement.
GST 2.0 — short-term pain, possible long-term gain
Goods and Services Tax (GST) was introduced in India with a view to promoting consumption and production efficiencies with a tax system that was destination-based. The objective was to ensure that the tax incidence fell on final consumers and taxes paid on inputs were rebated. The way GST evolved in the presence of a complex compensation cess mechanism continued to suffer from multiple tax rates, inverted duty structure and considerable compliance cost.
To the extent that the government has to bear a substantive amount of foregone revenues on account of these GST reforms, this benefit would accrue to the tax-payer and his disposable incomes would go up. Much of the benefit would accrue to consumers of goods in the 5% rate category, that are necessities.
GST 2.0 — short-term pain, possible long-term gain
The GST impact on growth arises from avoiding cascading and promoting better resource allocation
Centre taking undue credit for lowering GST rates, move was initiated by State: Mamata
West Bengal Chief Minister Mamata Banerjee on Sunday claimed that the Centre was taking undue credit for lowering GST rates, though the move was initiated by the state.
Her statement came after Prime Minister Narendra Modi, in an address to the nation, said a “GST savings festival” will begin from the first day of ‘Navratri’ on Monday, which, coupled with the income tax exemption, will be a “double bonanza” for most people.
Without naming the Prime Minister, Ms. Banerjee said, “We are losing ₹20,000 crore as revenue, but we are happy about the lowering of GST. But why are you [Modi] claiming credit for it? We had sought a lowered GST. It was our suggestion at the GST Council meeting..”
Will the GST rate cuts boost the economy? | Explained
There are several reasons why the GST rate cuts make sense now. The first is that the legal period for the GST compensation cess will likely be coming to an end this calendar year. It can be levied up to March 31, 2026 or till when the Centre pays off its loans, whichever is earlier.
Finance Minister Nirmala Sitharaman said she expects the loans to be repaid this calendar year. The removal of this cess, without raising the base rates on tobacco products, would mean that these ‘sin’ goods would have suddenly become significantly cheaper. This is something the Union government could not be seen to be condoning. That set a time limit by when the new rates had to be implemented.
The other reason is that the government expects some sort of detrimental impact from the 50% tariff imposed by the U.S. on imports from India. This is clear from the fact that, despite a strong 7.8% GDP growth in Q1 of this financial year, the government has not changed its 6.3%-6.8% growth estimate for the full year, implying it expects growth in the subsequent quarters to be significantly slower. The boost from the GST rate cuts is expected to offset this hit.
Will the GST rate cuts boost the economy? | Explained
GST Council approves new tax rates, reducing most items to 0%, 5%, 18%, and 40%, sparking mixed reactions and revenue concerns.
Nearly ₹2 lakh crore will be in people’s hand due to GST reforms: FM Sitharaman
Union Finance Minister Nirmala Sitharaman has said with the slew of GST reforms set to come into effect from September 22, a total of ₹2 lakh crore will be in the hands of the people, boosting domestic consumption.
With the simplification of the Goods and Services Tax from the earlier four slabs to 2 slabs, Ms. Sitharaman said Prime Minister Narendra Modi is keen to ensure that the poor and downtrodden, middle-class families and the micro, small and medium enterprises (MSMEs) largely benefit out of the GST reforms.
Add informalnewz.com as a Preferred Source
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
