New GST Rates 2025: List of Items Becoming Cheaper and Costlier from Sep 22

New GST Rates 2025:

From September 22, 2025, new Goods and Services Tax (GST) rates will come into effect in India. Finance Minister Nirmala Sitharaman recently announced these changes, which will directly impact daily life. The new rates are expected to reduce the burden on middle-class families by making essential items cheaper while luxury goods will continue to attract higher taxes.

New GST Rates 2025:

One of the biggest changes is that life and health insurance services will now have zero GST, giving relief to many households. In total, over 400 items will see a reduction in tax, making them more affordable. However, luxury and sin goods such as pan masala, tobacco products, and expensive cars will face up to 40% GST.

Items Becoming Cheaper:

0% GST (from earlier 12–18%): UHT milk, cheese, pizza bread, chapati, roti, certain medicines, notebooks, crayons, and some artworks.
5% GST (from 12–18%): Butter, ghee, footwear below ₹2500, cotton/jute handbags, wooden and bamboo furniture, sewing machines, dry fruits, namkeen, and solar equipment.
5% GST (from 18%): Shampoo, hair oil, toothpaste, chocolates, biscuits, coffee extracts, ice cream, and mineral water.
18% GST (from 28%): Air conditioners, washing machines, televisions, and smaller engine cars.

Items Becoming Expensive:

18% GST (from 5%): Coal, lignite, peat.
18% GST (from 12%): Clothes and quilts above ₹2500, certain types of paper.
40% GST (from 28%): Pan masala, tobacco, caffeinated drinks, high-capacity cars and bikes, yachts, and firearms.

These new GST rates are aimed at helping the common man by lowering costs of everyday goods while ensuring luxury and harmful products remain heavily taxed. Businesses have been instructed to display GST reduction boards in shops to inform customers about the new prices.

Overall, this tax reform is expected to bring relief to families, encourage consumption of essentials, and maintain strict taxation on luxury and sin goods.

ALSO READ: They Call Him OG: Can Emraan Hashmi’s Villain Match the Power of Pawan Kalyan?