GST Bonanza: Essentials, electronics, cars now cheaper for all

September 22, 2025 Hot from the Oven Valli Sarvani

In a major relief to consumers, the GST Council has slashed tax rates on hundreds of goods and services.

The revised rates come into effect from September 22, marking the start of Navaratri.

Now, only two GST slabs remain, 5% and 18%. Most daily-use items have shifted to the 5% or zero-tax category.

This move benefits lower-middle-class families, farmers, and small entrepreneurs.

Massive Savings on Essentials

Earlier, packaged food items like flour, rice, and pulses attracted 12% or 18% GST.

Now, they fall under the 5% slab. As a result, a family of four can save up to ₹1,800 per month, or approximately ₹ 21,600 per year.

Items such as soap, toothpaste, oil, and detergent, earlier taxed at 18%, now also attract only 5% GST.

Clothes and shoes have also become more affordable, with tax reduced from up to 18% to just 5%.

Electronics and Appliances Get Cheaper

TVs, ACs, refrigerators, and washing machines were taxed at 28%. Now, they fall under the 18% slab.

Prices of TVs (above 32 inches) have dropped by ₹2,500 to ₹85,000.

Affordable Medicines and Insurance

Thirty-three life-saving medicines, including those for cancer, are now tax-free. Earlier, they carried 12% GST.

Moreover, GST on health and life insurance has been cut from 18% to zero. This will make policies more affordable and boost coverage.

Big Cuts in Vehicle Prices

GST on bikes, cars, and SUVs has dropped from 28% to 18%. Consequently, the prices of small cars have decreased by ₹70,000 to ₹1.5 lakh.

Premium SUVs are cheaper by ₹1.25 lakh to ₹2.5 lakh. Luxury vehicle prices have fallen by up to ₹30.5 lakh.

Alongside rate cuts, GST registration and refund processes have also been simplified. Entrepreneurs will now find it easier to comply and operate.

Prime Minister Modi called this a “double bonanza”, combining GST cuts with the raised income tax exemption limit of ₹12 lakh.

Image by Mohamed Hassan from Pxhere (Free for commercial use / CC0 Public Domain)

Image Published on November 04, 2018

GST Bonanza: Essentials, electronics, cars now cheaper for all | Fusion - WeRIndia