New GST rates are in effect from September 22: Full list of what gets cheaper from today

The GST rate rationalisation announced by the GST Council earlier this month comes into effect from today, the first day of ‘Navratri’. The Council revised GST slabs from four (5, 12, 18 and 28 per cent) to two main rates, 5 per cent and 18 per cent, plus a special 40 per cent rate on select items and goods.

Prime Minister Narendra Modi called the reforms India’s ‘Bachat Utsav’, describing it as a festive-season gift for consumers. Union Finance Minister Nirmala Sitharaman said the move is not just rate rationalisation but a “structural reform” that eases compliance for businesses and consumers.

List of items that get cheaper under the new GST reforms

• Daily essentials and personal care
  Bathroom essentials (Hair oil, toilet soaps, shampoos, toothbrushes, toothpaste): From 18 per cent to 5 per cent
  Grooming products (Talcum powder, face powder, shaving cream, after-shave lotions): From 18 per cent to 5 per cent
  Baby products (Feeding bottles, baby napkins, clinical diapers): From 12 per cent to 5 per cent
• Food and kitchen staples
  Dairy products: From 12 per cent to 5 per cent
  Ghee: Cheaper by ₹40-70 per litre
  Butter: Cheaper by ₹4 per 100g pack, now ₹58
  Paneer: Cheaper by ₹4 per 200g pack, now ₹95
  Packaged foods (Namkeen, bhujia, instant noodles, chocolate, jams, ketchup, sauces): From 12 per cent to 5 per cent
• Healthcare and education
  Medicines: 33 lifesaving drugs now tax-free (Others move from 12 per cent to 5 per cent)
  Health & life insurance: 18 per cent → Nil
  Thermometers: 18 per cent → 5 per cent
  Medical-grade oxygen: 12 per cent → 5 per cent
  Wellness services (Gym, salon, barber, yoga, spa): 18 per cent → 5 per cent
  Education supplies (Exercise books, notebooks, pencils, crayons): 12 per cent → Nil
• Agriculture and farm equipment
  Tractor tyres & parts: 18 per cent → 5 per cent
  Tractors: 12 per cent → 5 per cent
  Drip irrigation systems and sprinklers: 12 per cent → 5 per cent
• Electronics and appliances
  Air conditioners: 28 per cent → 18 per cent
  TVs above 32 inches: 28 per cent → 18 per cent
  Monitors & projectors: 28 per cent → 18 per cent
  Dishwashing machines: 28 per cent → 18 per cent
• Automobiles and transport
  Small vehicles (up to 350cc): 28 per cent → 18 per cent
  Entry-level cars: ₹40,000-75,000 cheaper
  Mid-range sedans & SUVs: ₹60,000-1.56 lakh cheaper
  Premium & luxury vehicles: ₹1.8 lakh-4.48 lakh reduction; ultra-premium cuts exceed ₹30 lakh
  Two-wheelers (under 350cc): ₹5,600-18,800 cheaper
  Commercial vehicles: buses, trucks, ambulances see reductions
  Auto parts: all components now at uniform 18 per cent GST
• Hospitality and construction
  Hotel rooms ≤ ₹7,500 per night: 12 per cent → 5 per cent
  Cement: 28 per cent → 18 per cent

  Items that get more expensive

• ‘Sin goods’ and luxury items are now taxed at 40 per cent
  Pan masala: 28 per cent → 40 per cent
  Sugary/flavoured drinks, aerated beverages: 28 per cent → 40 per cent
  Other non-alcoholic beverages, fruit-based carbonated drinks: 18-28 per cent → 40 per cent
  Caffeinated beverages: 28 per cent → 40 per cent
  Unmanufactured tobacco (except raw leaves): 28 per cent → 40 per cent
  Cigars, cheroots, cigarillos, cigarettes: 28 per cent → 40 per cent
  Other tobacco products: 28 per cent → 40 per cent
  Passenger cars & hybrid petrol/ diesel cars (specific specs): 28 per cent → 40 per cent
  Motorcycles above 350cc: 28 per cent → 40 per cent
  Apparel & accessories above ₹2,500: 12 per cent → 18 per cent