GST Rate Cut 2025: Full List of Essentials Getting Cheaper from September 22

—

by

Himanshu
in ,

The central government, led by Prime Minister Narendra Modi, has given citizens a major Diwali gift through a sweeping GST 2.0 reform. In the latest GST Council Meeting, Finance Minister Nirmala Sitharaman announced that the four old GST slabs will now be reduced to just two major slabs — 5% and 18%, while luxury and sin goods will continue to attract higher rates.

From September 22, 2025, essential household items, clothing, footwear, and even appliances will become cheaper. The reform primarily focuses on the common man, farmers, and small traders, ensuring more savings in everyday purchases.

🔑 Key Highlights of GST 2.0 Reform

  • Simplified Structure: Only 5% and 18% slabs (except 40% for luxury/sin goods).
  • Big Relief on Essentials: Shampoo, oil, soap, biscuits, namkeen, ghee, butter, milk, and cheese now much cheaper.
  • Zero GST on Education & Dairy: Items like milk, cheese, pencils, notebooks, globes, and pizza-bread now tax-free.
  • Electronics Cheaper: Air conditioners, TVs, dishwashers, and monitors shifted to 18% from 28%.
  • Focus on Middle-Class Families: Clothes and shoes under ₹2,500 now taxed at just 5%.

📉 Essential Goods Price Comparison Before & After GST Cut

ItemEarlier GST RateNew GST RateOld Price (Incl. GST)New Price (Incl. GST)Savings
Shampoo (₹100 base)18%5%₹118₹105₹13
Soap/Oil (₹100 base)18%5%₹118₹105₹13
Namkeen (₹5 base)12%5%₹5.60₹5.25₹0.35
Biscuits (₹5 base)18%5%₹5.90₹5.25₹0.65
Cheese (₹75 base)12%0%₹84₹75₹9
Ghee (₹800 base/kg)12%5%₹896₹840₹56
Butter (₹230 half kg)12%5%₹258₹240₹18
Chocolate (₹50 base)18%5%₹59₹52.50₹6.50
Sweets (₹400/kg base)18%5%₹472₹420₹52
Clothes (₹2,000 value)12%5%₹2,240₹2,100₹140
Shoes (₹2,000 value)12%5%₹2,240₹2,100₹140
Pizza Bread5%0%₹105 (₹100 base)₹100₹5

🎓 GST Relief on Education Items

The government has made several education-related items completely tax-free, reducing the burden on parents and students:

  • Pencils and erasers
  • Cutters, globes, maps
  • Practice books, graph books
  • Laboratory notebooks

This is expected to bring significant relief to school-going children and their families.

⚡ GST Rate Reduction on Electronics & Appliances

Another big announcement is the reduction of GST on electronics and appliances, which earlier attracted 28% GST. Now, most of these fall under 18% slab:

  • Air Conditioners
  • Dishwashers
  • TVs (LED, LCD)
  • Water heaters
  • Monitors & Projectors

This will make household electronics more affordable for the middle class.

🏆 Why This Matters

  • Consumers: Lower household expenses, especially during the festive season.
  • Retail & FMCG: Boost in demand for soaps, shampoos, biscuits, and snacks.
  • Education Sector: Cheaper supplies for schools and students.
  • Electronics & Auto: Higher demand expected due to reduced GST burden.

✅ Conclusion

The GST 2.0 reform effective from September 22, 2025, is one of the biggest tax cuts in recent years. By reducing GST on essential goods, dairy, footwear, clothing, and electronics, the government aims to ease inflationary pressure and boost consumption demand during the festive season.

This GST cut is not just a Diwali gift but a long-term step toward simplified taxation and consumer relief.