Srinagar: New GST rate rationalisation announced by the GST Council earlier this month comes into effect from today. 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 sin goods.
Prime Minister Narendra Modi called the reforms India’s ‘Bachat Utsav’, describing it as a festive-season gift for consumers. He said the reforms will help people save more and spend on what they wish, benefiting youth, farmers, women, traders and entrepreneurs.
Union Finance Minister Nirmala Sitharaman said the move is not just rate rationalisation but a “structural reform” that eases compliance for businesses and consumers.
Here is what would be cheaper from today:
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
Completely tax-free: UHT milk, prepackaged paneer, Indian breads (chapati, roti, parantha)
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
Apparel & accessories above ₹2,500: 12 per cent → 18 per cent
‘Sin goods’ and luxury items 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
