The government has presented a pre-Diwali gift to the common man. During the 56th meeting of the GST Council held in New Delhi on Wednesday, some significant decisions were made. This includes reducing the tax slabs, effectively lowering the tax rates on numerous items. The new rates will be enforced from September 22, 2025. Under the new GST reforms, prices of over 100 items are set to decrease. These include essential goods, daily necessities, agricultural products, and health products where tax rates have been reduced.
Conversely, taxes have been hiked on luxury cars, tobacco products, caffeinated beverages, and even cricket match tickets. Let's take a look at what's become cheaper or more expensive under the new GST reforms...
Food Items
Vegetable fats/oils reduced from 12% to 5%
Waxes, vegetable wax down from 18% to 5%
Meat, fish, food products from 12% to 5%
Dairy products (butter, ghee) from 12% to 5%
Cheese/Paneer goes to 0% from 12%
Soy milk rate drops from 12% to 5%
Sugar, boiled sweets reduced to 5% from 12%-18%
Chocolate and cocoa powder from 18% to 5%
Pasta, corn flakes, noodles, biscuits, malt extract (non-cocoa) from 12%-18% to 5%
Jams, jellies, preserves, nut/fruit pastes, dried fruits down to 5% from 12%
Fruit juices, coconut water from 12% to 5%
Pre-packed pizza bread, khakhra, chapati, roti reduced to zero from 5%
Consumer and Domestic Goods Under GST
Hair oil, shampoo, toothpaste, shaving products, talcum powder slashed from 18% to 5%
Toilet soap (bar/cake) from 18% to 5%
Toothbrush, dental floss tumble from 18% to 5%
Shaving cream/lotion, aftershave fall to 5% from 18%
Standard tableware/kitchenware (wood, iron, copper, aluminum, plastic) from 12% to 5%
Feeding bottles and nipples, plastic beads decreased from 12% to 5%
Erasers reduced to zero from 5%
Candles from 12% to 5%
Umbrellas and related products from 12% to 5%
Sewing needles from 12% to 5%
Sewing machines and parts fall to 5% from 12%
Bags made from cotton/jute from 12% to 5%
Nappies/diapers for infants reduced to 5% from 12%
Furniture wholly made from bamboo, cane, rattan from 12% to 5%
Milk cans (iron/steel/aluminum) drop from 12% to 5%
Pencils, sharpeners, chalk now zero from 12%
Maps, globes, charts move to zero from 12%
Practice books, notebooks reduced from 12% to 0%
Electronics
Air conditioners (AC) tax cut from 28% to 18%
Dishwashers from 28% to 18%
TVs (LED, LCD), monitors, projectors from 28% to 18%
Agriculture and Fertilizer
Tractors (except road tractors above 1800cc capacity) from 12% to 5%
Rear tractor tires/tubes from 18% to 5%
Soil/cultivation/threshing agricultural machinery from 12% to 5%
Composting machines from 12% to 5%
Sprinklers/drip irrigation/lawn/sports rollers cut from 12% to 5%
Bio-pesticides, micronutrients from 12% to 5%
Pumps for fuel from 28% to 18%
Hydraulic pumps for tractors fall from 18% to 5%
Health and GST
Health and term insurance now zero from 18%
Thermometers, diagnostic kits decreased from 12% and 18% to 5%
Blood glucose monitors (glucometers) reduced from 12% to 5%
Medical grade oxygen and hydrogen peroxide from 12% to 5%
Eyeglasses reduced from 12% to 5%
Medical/surgical rubber gloves from 12% to 5%
Various medicines and special drugs now 5% or zero from 12%
Selected rare drugs to zero from 5% or 12%
Taxes on Cars and Bikes
Tires from 28% to 18%
Motor vehicles (small cars, three-wheelers, ambulances, motorcycles below 350cc, commercial vehicles) decrease from 28% to 18%
Motorcycles over 350cc increased from 28% to 40%
Large SUVs, luxury/premium cars, over-limit hybrid cars, racing cars from 28% to 40%
Rowing boats/canoes from 28% to 18%
Bicycles and non-motorized three-wheelers from 12% to 5%
Tobacco and Beverages
Cigars, cigarettes, tobacco products raised from 28% to 40%
Beedi (traditional hand-made) decreased from 28% to 18%
Carbonated/flavored drinks, caffeinated drinks hiked from 28% to 40%
Plant-based milk, beverages from fruit pulp reduced from 18% or 12% to 5%
Clothing
Synthetic yarns, non-woven fabrics, sewing thread, staple fiber from 12% and 18% to 5%
Apparel, readymade garments not exceeding ₹2,500 from 12% to 5%
Garments exceeding ₹2,500 raised from 12% to 18%
GST Rates on Paper
Paper for exercise books, graph books, laboratory notebooks to zero from 12%
Graphic paper increased from 12% to 18%
Paper sacks or bags, biodegradable bags from 18% to 5%
Handicrafts and Art
Carved art products (wood, stone, base metal, cork) from 12% to 5%
Hand-made paper and paperboard from 12% to 5%
Handicraft lamps from 12% to 5%
Paintings, sculptures, pastels, antique collectible items reduced from 12% to 5%
Leather Goods
Ready leather cut from 12% to 5%
Leather goods, gloves from 12% to 5%
Tax on Building and Construction Materials
Tiles, bricks, stone inlay work from 12% to 5%
Portland, slag, hydraulic cement from 28% to 18%
Energy and Renewable Energy
Solar cookers/water heaters, bio-gas/wind/waste to energy/solar panels from 12% to 5%
Fuel cell motor vehicles from 12% to 5%
Coal, lignite, peat increased from 5% to 18%
Service Sectors
Job work, umbrellas, printing, bricks, pharmaceuticals, hide/leather with ITC from 12% to ITC with 5%
Hotel lodgings under ₹7,500 per day from 12% to 5%
Cinema (tickets under ₹100) from 12% to 5%
Beauty services from 18% to 5% (without ITC)
Casino/race club entry, betting/gambling from 28% to 40%
Cricket match tickets (domestic and international) from 12% to 18%
