New GST Rate List 2025: Indian taxpayers are ready for a major shake-up as the new GST rates officially come into effect from today, September 22, 2025. Popularly referred to as GST 2.0, this reformed structure reduces the complicated four-rate system into just two main slabs — 5% and 18%.
Ultra-luxury items will now fall under a 40% slab, while tobacco and related products remain in the 28% plus cess bracket.
PM Modi on GST Reforms: “Savings Festival for Every Indian”
Prime Minister Narendra Modi hailed the GST reforms as a “Bachat Utsav” (savings festival), calling it a big and important step towards Aatmanirbhar Bharat.
“A GST bachat utsav will begin tomorrow. You will be able to buy things you like, more easily. The poor, middle class, youths, farmers, women, traders and shopkeepers will benefit from this,” the PM said.
He added that promoting swadeshi products alongside GST reform will speed up India’s growth story, empower MSMEs, and make everyday items cheaper.
Which Goods Fall Under the Highest Tax Category?
- Clothes above ₹2,500 → GST up from 12% to 18%.
- Aerated beverages with added sugar → 40% tax.
- Motorcycles over 350cc & private aircraft → 40% slab.
- Luxury cars & tobacco products → May see reduced effective tax since earlier extra cess has now been removed.
Industry Reactions
FICCI President Harsha Vardhan Agarwal:
“The streamlined tax structure, combined with Swadeshi emphasis, will support domestic production and manufacturing, boost MSMEs, and strengthen Make in India.”
Telangana CM Revanth Reddy:
Demanded that the Centre compensate states for 5 years to cover potential revenue losses from GST rationalisation. He reminded that during GST’s launch, states were promised compensation if tax growth fell below 14%.
Sector-Wise GST Breakdown (2025)
Food & Beverages
- Zero tax: Chapati, parantha, ultra-high temperature milk, chhena/paneer, pizza bread, khakra.
- 5% GST: Butter, ghee, dry fruits, sausages, sugar confectionery, jam, juice, ice cream, biscuits, cereals.
- 5% GST: Plant-based milk, soya drinks, other fats & cheese.
Beauty & Fitness Services
- 5% GST: Salons, spas, gyms, health clubs, yoga services.
Household & Personal Care
- 5% GST: Tooth powder, shampoo, talcum powder, soaps, hair oil, toothbrushes, utensils, umbrellas, bicycles, bamboo furniture.
- 18% GST: Consumer electronics like ACs, TVs, dishwashers.
Stationery & Footwear
- Zero tax: Maps, charts, globes, pencils, crayons, erasers, notebooks.
- 5% GST: Footwear & textiles.
Healthcare
- Zero or 5% GST: Life-saving drugs, medical devices, oxygen, glucometers, diagnostic kits, spectacles.
Insurance & Travel
- Zero tax: Life & health insurance.
- 5% GST: Third-party vehicle insurance, hotel rooms up to ₹7,500, economy flight tickets.
Vehicles & Auto Components
- 18% GST: Motorcycles up to 350cc (down from 28%).
- 5% GST: Electric vehicles.
- 18% GST: Auto components (down from 28%).
- 18% GST: Small petrol, CNG, LPG vehicles, diesel engines up to 1500cc.
Construction & Machinery
- 18% GST: Cement.
- 5% GST: Sewing machines, agri machinery, fertiliser inputs, biopesticides, tractor parts.
Festive Season Offers – Extra Benefits Beyond GST
Bajaj Pulsar NS125, N160 – Benefits up to ₹15,759
Bajaj Auto launched the Hattrick Offer:
- Full GST reduction passed on.
- Zero processing charges.
- Free comprehensive insurance.
- Pulsar NS125 ABS: Save ₹12,206.
- Pulsar N160 USD: Save ₹15,759.
Two-Wheelers That Got Cheaper (GST Cut: 28% → 18%)
Honda Two-Wheelers – Up to ₹18,887 Off
- Activa 110: ₹7,874 cheaper
- Dio 110: ₹7,157 off
- Shine 125: ₹7,443 off
- Hornet 2.0: ₹13,026 off
- CB350 H’ness: ₹18,598 off
- CB350RS: ₹18,857 off
- CB350: ₹18,887 off
Cars That Got Cheaper Under GST 2.0
Maruti Suzuki – Up to ₹2.25 Lakh Off
- Alto K10: ₹40,000 off
- WagonR: ₹57,000 off
- Swift: ₹58,000 off
- Baleno: ₹60,000 off
- Dzire: ₹61,000 off
- Brezza: ₹78,000 off
- Jimny: ₹1.14 lakh off
- Invicto: ₹2.25 lakh off
Tata Motors – Up to ₹1.55 Lakh Off
- Tiago: ₹75,000 off
- Tigor: ₹80,000 off
- Altroz: ₹1.10 lakh off
- Nexon: ₹1.55 lakh off
- Harrier: ₹1.40 lakh off
- Safari: ₹1.45 lakh off
Toyota – Up to ₹3.49 Lakh Off
- Fortuner: ₹3.49 lakh off
- Legender: ₹3.34 lakh off
- Hilux: ₹2.52 lakh off
- Vellfire: ₹2.78 lakh off
- Innova Crysta: ₹1.80 lakh off
Range Rover – Up to ₹30.4 Lakh Off
- 4.4P SV LWB: ₹30.4 lakh off
- 3.0D SV LWB: ₹27.4 lakh off
- Defender Range: Up to ₹18.6 lakh off
- Discovery: Up to ₹9.9 lakh off
Kia – Up to ₹4.48 Lakh Off
- Sonet: ₹1.64 lakh off
- Seltos: ₹75,372 off
- Carnival: ₹4.48 lakh off
Skoda – Benefits Up to ₹5.8 Lakh
- Kodiaq: ₹3.3 lakh GST cut + ₹2.5 lakh festive offer
- Kushaq: ₹66,000 GST cut + ₹2.5 lakh festive offer
Hyundai – Up to ₹2.4 Lakh Off
- Grand i10 Nios: ₹73,808 off
- Venue: ₹1.23 lakh off
- Tucson: ₹2.4 lakh off
Renault & Nissan
- Renault Kiger: ₹96,395 off
- Nissan Magnite Tekna+: ₹1,00,400 off
Mahindra – Up to ₹1.45 Lakh Off
- Bolero Neo: ₹1.27 lakh off
- Thar Range: Up to ₹1.35 lakh off
- Scorpio N: ₹1.45 lakh off
- XUV700: ₹1.43 lakh off
With GST 2.0, India moves closer to a simpler, fairer, and swadeshi-driven tax system, making daily essentials cheaper, vehicles more affordable, and boosting MSME-led growth.
Get Latest News Live on MTIMES along with Breaking News and Top Headlines, Political News and around The World.
You May Like
Trending Searches Today |
Amit Shah Pays Tribute on Hyderabad Liberation Day: Martyrs’ Courage Still Inspires India
ITR Filing Due Date Extension 2025: CBDT Extends Deadline by One More Day, How to File ITR Online
Seva Parv Special: How India Emerged as a Global Climate Champion
- DUAL CONNECTIVITY DESIGN PENDRIVE: The 2 in 1 pendrive 128GB features dual connectivity with a USB A and a Type C connec…
- 128GB AND HIGH-SPEED USB 3.2 TECHNOLOGY: Enjoy faster backups and reduced waiting times with this 128 GB pendrive 3.2 hi…
- COMPACT YET LARGE CAPACITY: Despite pen drive 128GB compact and portable size, the 128GB flash drive offers a substantia…
- Generous Storage Capacity: Store and organize your Full HD videos, high-resolution photos, music, designs, and more with…
- Blazing Fast Speed: Experience lightning-fast performance with speeds up to 10x faster than USB 2.0 drives, allowing you…
- Versatile Data Management: Seamlessly store, transfer, and share a wide array of digital content, including manuals, pro…
- ✅ Dual Interface (USB 3.0 + Type-C) – Works smoothly with TV, laptop, desktop PC, Mac, gaming consoles (PS4, Xbox), tabl…
- ✅ Ultra-Slim & Lightweight – Compact design (12 x 7.7 x 1.3 cm, ~150g) makes it easy to carry in your laptop bag or pock…
- ✅ Plug & Play, No Setup Needed – Instantly ready; just connect to your TV, Mac, or desktop without installing any softwa…