The GST Council has unveiled sweeping changes just in time for the festive season, aiming to simplify taxes and bring relief to consumers, farmers, and industries. Here’s a breakdown of what will get cheaper, what will cost more, and when you’ll see the changes in effect.
1. Mark Your Calendars: New GST Rates From 22 september 2025
The updated GST rates will officially come into effect on 22 september 2025. Most items will follow the new structure, except for certain tobacco products like cigarettes, bidis, chewing tobacco, and raw tobacco, which will continue under the old rates.
2. No Hassle With E-Way Bills
Good news for businesses and consumers! Existing e-way bills will remain valid even after the new GST rates kick in. This ensures that goods already in transit are unaffected, and no additional paperwork is required.
3. Soft Drinks Get Pricier: GST Hike Alert
Carbonated drinks like Coca-Cola, Pepsi, and other soda beverages will see their GST jump from 28% to 40%. This increase will push up retail prices, so festive shoppers might want to rethink their fizzy drink splurges.
4. Farmers Rejoice: Reduced GST on Agricultural Essentials
The GST reforms bring direct relief to farmers. Taxes on dairy products, fertilizers, bio-pesticides, and agricultural equipment have been reduced. This not only lowers farming costs but also benefits consumers through cheaper agricultural produce.
5. Insurance Becomes Affordable
Life insurance and health insurance premiums are now GST-free (0% GST). This makes buying insurance easier and more cost-effective, encouraging more people to secure their future without worrying about additional taxes.
6. Vehicles: Small Cars Cheaper, Luxury Cars Costlier
Luxury vehicles face a GST hike: petrol cars above 1200cc and diesel cars above 1500cc will attract 40% GST. On the flip side, smaller cars and bikes will become more affordable, thanks to reduced GST rates.
7. Bread and Bakery Items: GST-Free at Last
Previously, plain bread was exempt from GST, but items like pizza bread, parathas, and rotis had varying taxes. Now, all indian bread is GST-free, offering relief to customers and boosting sales of bakery staples.
8. Fruit Juice Drinks See a Tax Spike
While fruit juices earlier had GST plus compensation cess, the cess has been removed, and GST has been set at 40% to maintain government revenue. This means packaged fruit juices will now be noticeably pricier.
9. Paneer and Cheese: Small Producers Get a Boost
Loose or unlabelled paneer remains GST-free. However, packed and labelled paneer is now taxed differently. This change encourages small-scale producers while still regulating the commercial market.
10. Sports event Tickets: GST Rules Clarified
Tickets for recognized sporting events (excluding IPL) under Rs500 remain GST-free. Tickets above Rs500 will attract 18% GST, ensuring tax fairness while keeping small-scale event attendance affordable.
✅ Bottom Line
The GST reforms are designed to simplify taxation, reduce the burden on essential goods, and slightly increase taxes on luxury and processed items. From cheaper insurance and bread to costlier soft drinks and fruit juices, these changes will directly impact your festive shopping and household budget.
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.
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