India’s GST system is entering a new phase with the rollout of GST 2.0, effective September 22, 2025. This next-generation reform aims to simplify taxation, reduce consumer prices on essential goods, and rationalise rates across sectors. Here’s a detailed guide to what’s getting cheaper and how it impacts your wallet:
1. GST 2.0 Simplifies Taxation
Under GST 2.0, the tax structure is now streamlined into three main slabs:
- 5%: Essentials and essential services
- 18%: Standard goods including most household and consumer products
- 40%: Luxury and sin items
This replacement of multiple old categories simplifies compliance and reduces confusion for consumers and businesses alike.
2. ice cream and Other Food Items
Everyday consumables like ice cream, chocolates, and packaged foods now attract lower GST rates. This move makes festive treats and family favorites more affordable during the holiday season.
3. Household Appliances See Price Drops
Several high-ticket household appliances will be cheaper under the new GST structure:
- Air-Conditioners – Standardized to 18% GST
- Refrigerators – Price reduction expected
- Microwaves and Mixers – Cheaper for everyday use
These reductions make it easier for households to upgrade essential appliances without breaking the bank.
4. Personal Care and Essentials
GST cuts also apply to soaps, toothpaste, detergents, and hygiene products, helping families save on daily essentials.
5. Electronics and Consumer Gadgets
Selected electronics, including smart TVs, speakers, and small gadgets, will see reduced GST rates, boosting festive sales and consumer affordability.
6. Impact on Automobiles and Luxury Goods
Luxury items such as premium cars and lifestyle products remain in the higher 40% slab. However, some mid-range vehicles may benefit from slight reductions in taxes, encouraging festive-season purchases.
7. Benefits for Consumers and Businesses
- Immediate savings on essentials and appliances
- Simpler GST compliance for manufacturers and retailers
- Boost to festive spending, which stimulates the economy
8. Looking Ahead
GST 2.0 represents a consumer-friendly overhaul, reducing costs on everyday items while maintaining higher taxes on luxury goods. As it rolls out during the festive season, shoppers can enjoy savings on everything from ice cream to air-conditioners.
Disclaimer:
The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk..jpg)
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