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GST reforms: What might get cheaper and what may become costlier under new slabs? Check full list here
The GST Council's new rates will reduce taxes on essentials and increase levies on luxury and sin goods, with an estimated revenue impact of ₹48,000 crore, officials said.
- The GST Council approved a comprehensive reform on September 4, 2025, introducing a two-tier GST rate system of 5% and 18%, effective September 22 across India.
- The reform follows eight years of criticism about GST’s complexity and uneven benefits, with opposition leaders questioning the delay and economic strains on small businesses.
- The new structure reduces taxes on essentials like hair oil, soaps, bicycles, handicrafts, and marble while imposing a steep 40% rate on luxury and sin goods such as tobacco and high-value cars.
- Finance Minister Nirmala Sitharaman described the changes as structural reforms aimed at easing business and benefiting consumers, while Revenue Secretary Arvind Shrivastava estimated a Rs 48,000 crore revenue impact.
- These reforms, expected to stimulate domestic demand and address economic challenges, may make everyday essentials more affordable and benefit sectors like automobiles, FMCG, insurance, and small traders.
20 Articles
20 Articles
Instant coffee to be cheaper as GST reduced from 18% to 5%
Harpreet Singh, Partner, Indirect Tax - Deloitte India, said, “Coffee-related products, such as roasted chicory, coffee substitutes, and coffee concentrates, have now been moved to the 5% GST slab. While this change is expected to benefit consumers through lower retail prices, it poses a short-term challenge for retailers holding inventory purchased at higher tax rates. Nonetheless, the rate cut is likely to make coffee more affordable and boost…
GST Overhaul Sparks Rally in FMCG and Cement Stocks
GST Overhaul Sparks Rally in FMCG and Cement Stocks In a significant move, the GST Council has approved a comprehensive reform of the Goods and Services Tax (GST), causing a surge in FMCG, consumer durables, and cement stocks. This restructuring aims to make a wide range of everyday items, from hair oil to televisions, more affordable for consumers.The reform includes reducing GST slabs to 5% and 18%, effective from September 22, coinciding with…
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