GST Rate Cuts 2025: Full Item-Wise List of Cheaper Essentials, Lower Tax Slabs & What Gets Costlier in India"

GST Rate Cuts 2025: Full Item-Wise List of Cheaper Essentials, Lower Tax Slabs & What Gets Costlier in India"

India’s GST rate cuts September 2025 overhaul the tax slabs, making essentials more affordable and daily-use products cheaper for consumers, with key items moving to lower tax brackets and a 40% slab for luxury and sin goods.

Summary of GST Structure Reform

As of September 22, 2025, GST slabs are rationalized to:

• 0% (Exempt/Nil): Essential foods, life-saving medicines

• 5% (Lower Slab): Mass consumption goods, most FMCG products, select foods, and personal care

• 18% (Standard): Household appliances, vehicles, durable goods

• 40% (‘Sin/Luxury’ Slab): Cigarettes, pan masala, large vehicles, luxury yachts, private jets

Full List: Items Cheaper Due to GST Rate Cut

0% GST (Exempted)

• Ultra-high temperature (UHT) milk, paneer, chena, Indian breads (roti, chapati, paratha, pizza bread, khakhra)

• 33 life-saving drugs & rare disease medicines

• Individual life & health insurance premiums

• Stationery: notebooks, pencils, sharpeners, erasers

• Maps, globes, crayons, exercise books

5% GST (Reduced from 12%, 18%, or 28%)

• Dairy: Butter, ghee, cheese, jams, sauces, soups, pasta, namkeens, confectionery

• Personal care/FMCG: Hair oil, shampoo, toilet soap, toothpaste, toothbrush, shaving cream, talcum powder, candles, matches

• Dry fruits: Almonds, pistachios, cashews, dates, citrus fruits

• Medicines and healthcare: Medical equipment, diagnostic kits, bandages, thermometers, oxygen supplies

• Tractors, agricultural machinery (soil prep, harvesting, hay mowers, composting)

• Marble, granite blocks, eco-friendly materials, bamboo/cane furniture

• Toys, sports equipment, handicrafts

• Bicycles, motorcycles <350cc, electric/hybrid vehicles, ambulances, small cars (<1200–1500cc, <4m length)

18% GST (Reduced from 28%)

• Air conditioners, televisions (all sizes), dishwashing machines, monitors, projectors

• Cement: major relief for housing sector

• Small petrol/diesel cars and motorcycles up to 350cc

Full List: Items Costlier Due to GST Increase (40% Slab)

• Pan masala, gutkha, chewing tobacco, cigarettes (from 28%)

• Carbonated soft drinks, caffeinated beverages, fruit-based fizzy drinks

• SUVs and large cars (>1200cc petrol or >1500cc diesel)

• Motorcycles >350cc, yachts, private jets, revolvers, pistols

Sectoral Highlights

• Housing: Cement moved to 18% GST, lowering infrastructure costs

• Automobiles: Small cars and two-wheelers cheaper; large vehicles, luxury models more expensive

• Healthcare: Major cost reductions on medicines and equipment

• FMCG and Daily-Use: Most personal care and packaged food items now taxed at only 5%, making them affordable

Comparison Table: GST Rate Cuts for Major Items

Category	Previous GST	New GST	Notes
UHT milk, paneer, roti	5–12%	0%	Exempted
Hair oil, shampoo	18%	5%	Major daily-use products
Toys, stationery	12–18%	5%	Includes notebooks, pencils, erasers
Butter, ghee, cheese	12–18%	5%	Dairy, spreads, jams
Cement	28%	18%	Housing sector boost
Air conditioners, TVs	28%	18%	All appliances
Cigarettes, pan masala	28%	40%	Sin/luxury goods, major tax hike
SUVs, yachts, jets	28%	40%	Luxury cars and vehicles

Conclusion

The new GST rates in India (September 2025) significantly reduce the cost of daily essentials, personal care, food items, housing materials, and healthcare, with a focused tax hike on luxury and sin goods. These changes can drive consumption, boost affordability, and have a positive impact on middle-class and essential sectors.