India’s tax system just hit refresh. From September 22, 2025, the GST Council rolled out a major restructuring—collapsing multiple slabs into just two: 5% and 18%, with a special 40% band for sin and luxury goods. – New tax rates in India 2025
Why this matters:
Your air conditioner, fridge, insurance policy, and even a bar of soap could get cheaper. But not everything—mobiles & laptops remain at 18% GST. Let’s unpack what that means for your wallet.
New tax rates in India 2025 – What Exactly Changed?
- Old GST structure: 5%, 12%, 18%, 28%
- New GST 2.0: 5%, 18%, plus a 40% slab for select luxury/sin items
- Effective from: September 22, 2025
- Impact: Many essential goods move to lower slabs; some services become tax-free
Sources: GST changes India 2025
- NDTV “GST Revamp: What Gets Cheaper, Costlier?” See Full List Here
- Reuters “Winners and losers in India’s sweeping GST overhaul”
The Math No One Talks About: Real Savings on MRP
| Old GST → New GST | % Drop in MRP | Example (₹30,000 base price) | Old Price (₹) | New Price (₹) | Savings (₹) |
| 28% → 18% | ~7.8% | Split AC, Refrigerator | 38,400 | 35,400 | 3,000 |
| 18% → 5% | ~11.0% | Shampoo, Toothpaste Basket | 35,400 | 33,000 | 2,400 |
| 12% → 5% | ~6.25% | Kitchenware, Bicycle | 33,600 | 31,800 | 1,800 |
| 5% → 0% | ~4.76% | Milk, Paneer, Stationery | 31,500 | 30,000 | 1,500 |
| 18% → 0% | ~15.25% | Life & Health Insurance | 35,400 | 30,000 | 5,400 |
This kind of tangible, price-by-price illustration makes your blog actionable and engaging.
Electronics price drop India 2025 (and One Surprise)
Likely Cheaper — GST falls from 28% → 18% (~7.8% drop):
- Air-conditioners (split/inverter)
- Large-screen TVs (43–75″)
- Double-door refrigerators
- Washing machines (front/top-load)
- Dishwashers
- Projectors
Sources:
- NDTV list: GST Revamp: What’s Cheaper, Costlier? See Full List Here
- Reuters “Winners and losers in India’s sweeping GST overhaul”
- NDTV kitchen-focused breakdown: How Revised GST Rates Will Help You Cut Down Kitchen Expenses
Nuance Alert: Flat-panel TV components now have 5% BCD, but full-panel imports see 20% duty, which may dilute savings.
Not Cheaper: Mobiles & Laptops still at 18%
Source: GST Rates Revised: What Gets Cheaper
FMCG & Personal Care: Everyday Essentials Get Relief
- 18% → 5% (~11% savings): shampoo, toothpaste, toothbrushes, soaps
- 12% → 5% (~6.25%): kitchenware, umbrellas, bicycles, combs, feeding bottles
Source: NDTV list: GST Revamp: What’s Cheaper, Costlier? See Full List Here
Essentials, Education & Healthcare
- Brother Zero GST: chapati/paranthas, pizza bread, UHT milk, paneer, khakhra
- Stationery zero-rated: pencils, notebooks, erasers
- Healthcare relief: life-saving drugs, thermometers, diagnostics, corrective spectacles reduced to 5% or nil.
Sources: Products cheaper after GST cuts
- NDTV list: GST Revamp: What’s Cheaper, Costlier? See Full List Here
- NDTV additional context: GST Rates Revised: What Gets Cheaper
Auto, Construction & Agri Inputs: Get Ready for Cheaper Essentials
- Motorcycles (≤350cc), components, small cars: 28% → 18%
- EVs: remain at 5% (no change)
- Cement: 28% → 18%
- Farm machinery & fertilizers: 12/18% → 5%
NDTV list: GST Revamp: What’s Cheaper, Costlier? See Full List Here – Lower tax rates industries India
What Didn’t Change or Got Costlier
- Mobiles & Laptops: still at 18%
- Premium Apparel (>₹2,500): increased to 18% (from 12%)
- Slowest sector reaction: Coal GST moved from 5% to 18%, harming some industries
Sources: GST changes India 2025
- Reuters GST winners/losers: Winners and losers in India’s sweeping GST overhaul
- Reuters report on luxury EVs possibly facing 40% GST: India tax panel calls for steep levies on luxury EVs in blow for Tesla, BMW
Festive Season Tips for Buyers
- Wait for revamped MRPs—retailers must clear old-stock first
- Insist on GST-inclusive billing with updated slabs
- Top bargain categories: ACs, fridges, FMCG bundles, insurance renewals
- TV buyers beware: imported panels may not see full savings
Final Take
The GST 2.0 overhaul is more than a tax tweak—it’s a massive cost realignment. From shampoos to refrigerators, insurance to bread, many things are getting genuinely cheaper.
Still, the iPhone stays expensive, and certain sectors (like premium apparel) actually get hit harder. If you’re planning festive shopping, late September 2025 is prime time—just keep your receipts and compare.
Tax reforms don’t just impact prices—they reshape industries. If you’re a business owner, investing in SEO and digital growth ensures your brand stays ahead in 2025.
