Following the GST rate cuts effective in late 2025/early 2026, numerous consumer items have become cheaper, including everyday groceries (dairy, spices, packaged food), personal care products (soaps, hair oil, cosmetics), and household appliances like ACs, TVs, and washing machines. Key reductions also include 2-wheelers, small cars, and cement, while health insurance premiums are now exempt.
GST on cement reduced from 28% to 18%, lowering housing and infrastructure costs. Healthcare made affordable with GST on medicines cut to 5%/Nil, while health insurance is made exempted from GST. Uniform 5% GST on drones introduced, supporting startups and the Make in India initiative.
Conclusion. In India, HSN codes and GST on clothing affect more than just compliance - they impact product pricing, buying strategies, and stock control. GST 2.0 has brought relief to taxpayers by making readymade garments below ₹2500 cheaper, but the banded garments become a bit more expensive with 18% GST on clothes.
Gyms, salons, barbers, and yoga GST cut from 18 per cent to 5 per cent. In the education sector, learning tools such as pencils, crayons, sharpeners, erasers, and exercise books will now be exempt from GST. Geometry boxes and related school supplies will move from 12 per cent to 5 per cent.
A wide range of everyday essentials and business inputs now fall under the concessional 5 percent rate. In food and beverages, items like butter, ghee, dry fruits, biscuits, juices, cheese, and dairy fats have become cheaper, reducing costs for households and input expenses for the hospitality sector.
Likely market beneficiaries:
Restaurant meals and drinks at restaurants, coffee shops, pubs and food trucks. Food for delivery will be included in the tax cut but not any delivery charges themselves. Children's items including clothing, footwear, diapers, car seats, jigsaw puzzles and toys intended for children under 14 years old.
The Government: A Boost in Revenue
From a government standpoint, GST has been a resounding success in terms of revenue generation and increase in tax base. The number of Taxpayers is increasing from year to year and the same thing can be said about the collection of GST.
The key categories of goods and services included under the special 40% GST slab are, Tobacco and related intoxicants as sin goods (e.g., cigarettes, bidis, pan masala, caffeinated drinks) Drinks with high sugar content and caffeinated.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
The GST council led by Finance Minister, Nirmala Sitharaman, has decided to cut the Goods and Services tax (GST) on beauty, wellness and physical well-being services from 18% to 5%, without Input Tax Credit (ITC).
Mother Dairy Revises Prices Following GST Reduction
Mother Dairy announced a price cut across several dairy items such as Ultra-High Temperature (UHT) milk, paneer, ghee, cheese, and ice creams due to a GST revision. UHT milk now attracts 0% GST, down from 5%, bringing the price of a 1-litre tetra pack from ₹77 to ₹75.
Everyday staples like edible oils, packaged atta, and soaps are also set to get cheaper under revised slabs. Even Rail Neer, bottled water, sold on trains, will cost less. Air conditioners, dishwashers, TVs, computer monitors, etc will get cheaper. Entry level cars, smartphones and bikes will see a sharp cut in prices.
Food items like UHT milk, paneer/chena, breads like paratha/parotta, khakhra, chapati/roti, pizza bread exempted from GST. GST on packaged food/snacks, chocolates, sauces, juices, coffee, etc. reduced to 5%, boosting demand and industry growth.
Delhi After the GST Rate Cuts: What Changes for Consumers and Businesses. Everyday essentials like dairy (milk, paneer, ghee), footwear, furniture, stationery and even salon services now cost 6–12% less, easing household budgets.
For a $70,000 income in Canada (using 2025 rates), you'll pay roughly $13,000 to $20,000 in total taxes (federal, provincial, CPP, EI), depending on your province, resulting in a take-home pay around $50,000-$59,000, with federal tax around 14.5% or 20.5% depending on the portion, plus provincial tax and deductions like CPP and EI.
Key items exempted from GST:
The 3-5-7 rule in stock trading is a risk management strategy: risk no more than 3% of capital on a single trade, keep total open position risk under 5%, and aim for a minimum 7% profit target or 7:1 reward-to-risk ratio, ensuring capital preservation and disciplined growth by setting clear limits and avoiding emotional decisions.
GST Rate and Slab Changes in September 2025
GST rate cuts on 200 items happened from 22nd September 2025. 90% of items in the current 28% slab are moved to the 18% slab. Almost 99% of the items in the 12% slab are moved to the 5% slab.
Taxes on aerated drinks, tobacco and luxury goods will now come under the 28 percent tax bracket under GST, so it will get costlier. Real Estate will also get expensive as it will now attract a GST of 12% as opposed to 6%.
Most Processed Foods and Snacks at Just 5% GST
- Dairy & bakery: Butter, cheese, ghee, cream, condensed milk, yoghurt (packaged), and dairy spreads all move to 5%. Packaged breads (like loaves and buns) and bakery items (cakes, biscuits, crackers, cookies) are at 5%. In short, most bakery and dairy-based foods are 5%.