Top News

The new GST 2.0 reforms have come into force from i.e. September 22 2025 as the government reduces taxes on hundreds of items and also raises GST on luxury and sin goods. Yesterday Prime Minister Narendra Modi urged MSMEs to promote swadeshi products calling the reforms a step towards Aatmanirbhar Bharat. He described the changes as a “GST bachat utsav (savings festival)” and promised relief for the poor middle class youth farmers traders and small businesses. GST 2.0: What Will Become Cheaper? GST slab revision: From four rates (5% 12% 18% 28%) to two (5% and 18%) plus a special 40% rate on select items and sin goods. 375 items cheaper: Automobiles electronics kitchen staples and medicines among those seeing price cuts. Food products: Beverages containing milk coffee biscuits butter cereals dry fruits ghee paneer pastries ice cream sauces jams and tender coconut water now attract lower GST. Daily-use items: Toiletries like shampoos soaps creams powders and shaving products to become more affordable. Electronics: ACs TVs washing machines and dishwashers to see price reductions. Healthcare: GST on medicines diagnostic kits and glucometers cut to 5% lowering treatment costs. Services: Reduced GST for barbers salons gyms health clubs and yoga centres. Real estate: GST on cement reduced from 28% to 18% expected to lower housing costs. Auto sector: Effective tax (including cess) brought down to a flat 40% from 35–50% benefiting car buyers. Consumer brands: Companies like Amul HUL LOréal and Himalaya have already cut prices; auto firms announced festive “Diwali discounts.” GST 2.0: What Will Become Expensive? Soft drinks: Coca-Cola Pepsi and other carbonated/non-alcoholic beverages will attract 40% GST up from 28–18%. Sugar-added or flavoured beverages: GST raised to 40%. Luxury vehicles & goods: Petrol cars above 1200cc diesel cars above 1500cc vehicles longer than 4000mm motorcycles above 350cc as well as yachts private aircraft racing cars station wagons and smoking pipes will now face 40% GST.