In Brief
New GST rates effective nationwide from today
Essential goods to become cheaper
Unique gift for citizens during Navratri
(GST) From today, i.e., from September 22, 2025, the rate cut has been implemented as per the decision of the GST Council. As a result, a total of 375 items have become cheaper, providing direct benefits to ordinary consumers. The reduction in tax on items such as milk, biscuits, grains, butter, ice cream, fruit juices, ghee, paneer, dry fruits, as well as daily use items like soap, shampoo, face cream, and toothbrushes will lead to a decrease in prices.
Union Finance Minister Nirmala Sitharaman referred to the GST reform as a 'Diwali gift'. The existing four tax slabs (5%, 12%, 18%, and 28%) have been reduced to just two rates (5% and 18%). Additionally, a rate of 40% has been set for certain specific and sin goods. According to Sitharaman, these reforms are not just for reducing the tax structure but also to allow businesses to pay taxes more conveniently and to provide direct benefits to consumers.
The reduction in rates will greatly benefit the electronics sector and the automotive industry. Prices of ACs, washing machines, TVs, and dishwashers will decrease. The total tax on vehicles has been reduced from 35–50% to directly 40%, leading to a drop in the prices of cars, bikes, and other vehicles. The tax on cement has been reduced from 28% to 18%, which is likely to reduce the cost of house construction.
Additionally, medicines and medical equipment will also become cheaper. The GST on diagnostic kits and glucometers has been set at only 5%. As a result, instructions have been given to pharmacists to reduce the prices of medicines. Furthermore, due to the reduction in GST on beauty salons, barbers, fitness centers, and yoga services, these services will also be available at lower prices.
After the price reduction was announced, many companies have declared new prices for their products. The Railway Board has also reduced the prices of water bottles. A 1-liter bottle of Rail Neer will now be available for Rs.14 instead of Rs.15, and a 500 ML bottle for Rs.9 instead of Rs.10. These prices have been implemented nationwide from today.