In a major Diwali gift to crores of Indians, the Goods and Services Tax (GST) Council has announced sweeping tax reforms that will directly benefit households. Essentials like milk, roti, paneer, ghee, as well as biscuits, sauces, soaps, shampoos, and toothpaste are now in the lower slab. Even big-ticket items such as health insurance, motorcycles, air-conditioners, and televisions will see reduced rates, giving massive relief to the middle class.
Prime Minister Narendra Modi hailed this as “Next-Gen GST”, calling it a step towards ease of living and affordability for every citizen.
GST Simplified: Only Two Slabs Remain
The GST Council has simplified the structure drastically. From September 22, only two slabs will remain — 5% and 18%, along with a special 40% category for luxury and harmful goods.
This reform aims to eliminate confusion, simplify taxation, and boost consumer spending ahead of the festive season.
Full List Of Cheaper Items As GST Rates Cut
Here’s the list of GST revisions, showing how the new tax rates will benefit consumers:
| Item Category | Old GST Rate | New GST Rate |
|---|---|---|
| Milk, Roti, Paneer, Ghee | 12% | 5% |
| Biscuits, Sauces, Pasta | 12% | 5% |
| Dry Fruits, Pizza Bread | 12% | 5% |
| Oxygen, Glucometers, Test Kits | 5% | Nil |
| Critical Drugs, Bandages | 12% | 5% |
| Soap, Shampoo, Toothpaste | 18% | 5% |
| Candles, Toys, Furniture | 12% | 5% |
| Solar, Wind Devices | 12% | 5% |
| Biogas Equipment | 12% | 5% |
| Textiles, Cement, Televisions | 28% | 18% / 5% (as per item) |
| Small Cars, Motorcycles | 28% | 18% |
| Life & Health Insurance Policies | 18% | Nil |
| Luxury Cars, Big SUVs | 28% | 40% |
| Cigarettes, Tobacco, Gutkha | 28% | 40% |
| Aerated Drinks With Sugar | 28% | 40% |
What It Means For Consumers
- Households – Daily needs like soaps, biscuits, milk, and roti are cheaper.
- Healthcare – No GST on health insurance, oxygen, and test kits.
- Middle Class – ACs, TVs, and bikes will be more affordable.
- Businesses – Textile and cement rationalisation eases input costs.
- Green Energy – Solar, wind, and biogas devices at 5% to boost renewable adoption.
What’s Not Cheaper
While consumers get massive relief, some items have been moved to the 40% special slab. These include:
- Luxury cars and big SUVs
- Cigarettes and tobacco products
- Gutkha and pan masala
- Aerated and carbonated drinks with sugar
This ensures that harmful and luxury products remain heavily taxed, while essentials become cheaper.
Conclusion
The GST rate cuts are being seen as a historic reform ahead of Diwali, bringing cheer to households and small businesses alike. With lower prices on essentials, healthcare, and durables, the government has focused on ease of living and affordability. At the same time, the 40% slab ensures that luxury and harmful products remain out of reach for the common man.
This move is not just a tax reform but also a strong push towards inclusive growth and Aatmanirbhar Bharat.
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