Following the September 2025 GST rate cuts,375+ items became cheaper, including electronics (ACs, TVs), daily essentials (soaps, shampoo), food items (butter, ghee, dry fruits, biscuits), medicines, two-wheelers, and services like gyms and salons. Key rate reductions, such as cement dropping to 18%, are also reducing construction costs.
Electronics That Got Cheaper After the 2025 GST Cut. Many essential home appliances were included in the GST rate change. Let's look at which categories became more affordable. Thus, GST on electronics like TVs (above 32"), ACs, and dishwashers fell from 28% to 18% in 2025, leading to lower prices.
GST Reforms 2025: Key Changes in GST Rates Across Categories
Key categories have seen rate reductions: daily essentials have dropped from 12%/18% to 5%, agricultural equipment from 12%/18% to 5%, healthcare services to 5% or exempt, and education services are now fully tax-exempt.
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.
Likely market beneficiaries:
By lowering GST rates on daily food items, construction materials, gyms/fitness centres, and automobiles, the Government has not only reduced the financial burden on households but also advanced its long-term vision of promoting healthier lifestyles, affordable housing and transportation, and improved ease of living ...
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%.
Effective October 1st, 2025, a new set of rules for GST return filing will come into effect. This marks the first filing cycle under the GST 2.0 reforms, aimed at improving transparency, control, and accuracy in Input Tax Credit (ITC) management through the Invoice Management System (IMS).
TVs up to 32" were at 18% while larger sizes were at 28%. Following the 56th GST Council meeting (effective September 22, 2025), all televisions are taxed at a uniform rate of 18% GST. As a result, prices of larger TVs should fall relative to the old 28% slab, while ≤32" models remain unchanged at 18%.
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%.
Take advantage of the New GST reforms and save more! Under the Next-Gen GST reforms, footwear priced up to INR 2,500 per pair now attracts a lower tax rate. GST on such footwear has been reduced from 12% to 5%, making affordable footwear easier to buy for consumers.
Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from Monday (September 22, 2025) as the reduced Goods and Services Tax (GST) rates on about 375 items come into effect.
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.
From September 22, 2025, fresh and pasteurised milk remain fully exempt from GST. Pre-packaged items such as UHT milk, paneer, and curd are also exempt, benefiting consumers with zero tax on these products. However, dairy products like butter, ghee, cheese, and similar items attract a reduced GST rate of 5%.
How to Avoid GST on Overseas Purchases Legally
For the July 2025–June 2026 benefit year, the maximum annual GST amounts are: $533 – Single individual. $698 – Married or common-law couples. $184 – Per eligible child under 19.
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
Key Categories of Goods under 40% GST Slab
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
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.
New tax reform for 2025, largely enacted through the "One Big Beautiful Bill Act" (OBBBA) passed in mid-2025, made several major changes, including making some 2017 Tax Cuts and Jobs Act (TCJA) provisions permanent, increasing standard deductions, offering new deductions for overtime and senior care, raising the Child Tax Credit, and permanently making the 20% Qualified Business Income (QBI) deduction, alongside adjustments to corporate tax rates and SALT deductions. Key personal tax changes involve an extra senior deduction, higher Child Tax Credit to $2,200, and tax-free overtime pay up to $12,500, while making key business provisions permanent.
Food & household items: Packaged food products, soaps, and juices now attract a 5% rate, easing monthly grocery budgets. Medicines & health products: With lower GST, essential medicines, life insurance premiums, and health insurance will become more affordable.