GST Rate Changes This Diwali: Full List of Items Likely to Get Cheaper Under 5% and 18% Slabs
Share this article:
As the festive season approaches, the government is preparing for a major reform in the Goods and Services Tax (GST) structure. A proposal to rationalise GST slabs and reduce rates on several daily-use and big-ticket items has been sent by the Finance Ministry to the Group of Ministers (GoM). If approved, this could make many essentials and aspirational goods lighter on the pocket.
The upcoming changes are aimed at making GST simpler, fairer, and more business-friendly. The government plans to:
These steps are designed not just to support the economy but also to make life easier for students, women, farmers, the middle class, and small entrepreneurs.
If the proposed changes are implemented, most goods under the 12% slab may move to 5%, while a majority of items under 28% may shift to 18%. Here’s a look at the categories expected to see price drops:
Items Likely To Move To 5% GST
Items Likely To Move To 18% GST
When Will The New Rates Kick In?
The GST Council will take up these recommendations in its upcoming meeting. The Finance Ministry has assured that every effort will be made to roll out the changes quickly, with an aim to bring relief to consumers within the current financial year.
This festive season, the government’s GST reform push could be the biggest gift for households and businesses, making both essentials and luxury items more affordable.
Why GST Reforms Are Being Pushed
The upcoming changes are aimed at making GST simpler, fairer, and more business-friendly. The government plans to:
- Fix inverted duty structures so businesses don’t lose out on input tax credits.
- Resolve classification disputes to avoid confusion and compliance hassles.
- Ensure stability in tax rates for long-term industry confidence.
- Cut down slabs to just two – standard and merit – with special rates only for select items.
- Use technology to simplify registrations, refunds, and return filing for small businesses.
These steps are designed not just to support the economy but also to make life easier for students, women, farmers, the middle class, and small entrepreneurs.
What Could Get Cheaper?
If the proposed changes are implemented, most goods under the 12% slab may move to 5%, while a majority of items under 28% may shift to 18%. Here’s a look at the categories expected to see price drops:
Items Likely To Move To 5% GST
- Personal care products: toothpaste, soaps, hair oil
- Packaged foods: snacks, frozen veggies, condensed milk
- Household gadgets: mobiles, computers, sewing machines, cookers, geysers
- Daily-use appliances: irons, vacuum cleaners, water filters (non-electric)
- Clothing & footwear: garments above ₹1,000, footwear priced between ₹500–₹1,000
- Medicines & healthcare: vaccines, Ayurvedic products, diagnostic kits for TB/HIV
- Education & stationery: exercise books, maps, geometry boxes, globes
- Transport & agriculture: bicycles, non-kerosene stoves, farming equipment, solar water heaters
- Building & home essentials: glazed tiles, prefabricated structures, vending machines
Items Likely To Move To 18% GST
- Construction materials: cement, ready-mix concrete
- Electronics: TVs, fridges, washing machines, ACs
- Beverages: aerated water, sugar syrups, protein concentrates
- Household goods: dishwashers, printers, razors, dental floss, manicure kits
- Transport-related: car seats, motorcycle seats, AC units in railways
- Miscellaneous: rubber tyres, aluminium foil, tempered glass, plastic products, aircraft for personal use
When Will The New Rates Kick In?
The GST Council will take up these recommendations in its upcoming meeting. The Finance Ministry has assured that every effort will be made to roll out the changes quickly, with an aim to bring relief to consumers within the current financial year.
This festive season, the government’s GST reform push could be the biggest gift for households and businesses, making both essentials and luxury items more affordable.
Next Story