GST Rate Cuts 2025: What’s Cheaper and What Gets Costlier After Council’s Big Decision

The Goods and Services Tax (GST) Council’s 56th meeting has brought sweeping changes to India’s tax regime. From household essentials to luxury items, the new GST rates promise relief for consumers while putting heavier levies on sin goods and high-end products. Here’s a complete breakdown of what you’ll pay less (and more) for.

Daily Essentials Turn Cheaper

The biggest relief comes for groceries and everyday kitchen items:

• Tax-free: UHT milk, paneer, parathas, pizza bread, khakhra and roti.
• 5% GST: Butter, ghee, cheese, jams, sauces, soups, pasta, namkeens and confectionery.
• Dry fruits & fruits: Almonds, pistachios, cashews, dates and citrus fruits now attract only 5%.

Healthcare Becomes More Affordable

Medical care sees major tax cuts, especially for life-saving treatments:

• Exempted: Agalsidase Beta, Onasemnogene, Daratumumab and Alectinib.
• 5% GST: Most medicines, medical devices, diagnostic kits, oxygen supplies, bandages and thermometers.

Personal Care and Household Items Get Relief

Daily-use consumer goods and stationery are set to cost less:

• Hair oil, shampoo, toothpaste, soaps, shaving kits, talcum powder, toothbrushes, candles and safety matches are down to 5%.
• Notebooks, pencils, sharpeners, erasers, toys, sports goods, bamboo and cane furniture also fall into the cheaper bracket.

Appliances and Housing Materials See Rate Cuts

Big-ticket home essentials also get a breather:

• Cement: Reduced from 28% to 18%.
• Appliances: ACs, TVs, dishwashers and other large electronics come with lower tax rates.
• Vehicles: Tractors, bicycles, motorcycles under 350cc, small cars, electric & hybrid cars, and ambulances attract reduced GST.
• Building materials: Marble, granite blocks and eco-friendly boards made from crop residue are now taxed at just 5%.

What’s Becoming Costlier Under New GST Rates

While daily essentials get cheaper, luxury and sin goods face a hike:

Tobacco & Beverages

• Pan masala, gutkha, chewing tobacco and cigarettes now attract 40% GST (up from 28%).
• Fizzy drinks, carbonated beverages and caffeinated soft drinks also jump to the 40% bracket.

Luxury Vehicles & Goods

• SUVs, large cars with bigger engines, motorcycles above 350cc, yachts, private jets, revolvers and pistols now carry a 40% GST slab.

Other Hikes

• Coal, lignite and peat: 18% GST (up from 5%).
• Biodiesel (not blended with diesel): 18% (up from 12%).
• Premium textiles and apparel above ₹2,500 per piece, costly cotton quilts and certain paper products like uncoated and kraft paper now move to the 18% bracket.

The new GST structure strikes a balance - making essentials, medicines and everyday items more affordable while discouraging consumption of sin goods and high-end luxury items through steep hikes. For households, healthcare, personal care and grocery bills will shrink, but indulgence in premium products or tobacco will pinch the pocket harder.