GST 2.0 From September 22: Full List of Items Getting Cheaper and Costlier

India’s tax system is set for a major revamp as the GST Council introduces a simplified slab structure effective September 22. The new regime will primarily operate with four slabs – 0%, 5%, 18%, and 40% – reducing complexities and making many essential goods more affordable. While sin and luxury goods will continue to face a steep 40% tax, a wide range of daily-use products are moving to lower slabs.

What Gets Cheaper From September 22?

Daily Essentials

• No tax on UHT milk and Indian breads (earlier 5%).
• Dairy products like condensed milk, butter, ghee, and cheese move to the 5% slab (down from 12%).
• Personal care items such as hair oil, toothpaste, toilet soap, toothbrush, and shaving cream drop from 18% to 5%.
• Dry fruits including almonds, cashews, pistachios, hazelnuts, and dates shift to 5% (earlier 12%).
• Baby products like feeding bottles, napkins, clinical diapers, along with utensils, sewing machines, and parts – now at 5% instead of 12%.
• Confectionery like toffees, candies, refined sugar, and syrups fall to 5%.
• Edible oils, spreads, sausages, meat/fish products, and malt-based foods taxed at just 5%.
• Namkeens, mixtures, bhujia, and savoury snacks – reduced from 12% to 5%.
• Packaged drinking water (without added sugar/flavours) will now attract only 5% GST.

Agriculture & Fertilisers

• Fertilisers taxed at 5% (earlier 12–18%).
• Tractors down to 5% (from 12%), while tractor tyres/parts cut to 5% (from 18%).
• Bio pesticides, micro nutrients, drip irrigation, sprinklers, and agri-machinery for soil prep, cultivation, and harvesting – all down from 12% to 5%.

Healthcare & Education

• Thermometers now taxed at 5% (earlier 18%).
• Health and life insurance premiums will be tax-free.
• Medical items like oxygen, diagnostic kits, reagents, glucometers, strips, and corrective spectacles – cut from 12% to 5%.
• Education goods including maps, charts, globes, pencils, sharpeners, crayons, notebooks, and erasers will now be zero-taxed (earlier 12%).

Electronics & Appliances

• ACs, large TVs (above 32 inches), monitors, projectors, and dishwashers – tax down from 28% to 18%.

Automobiles

• Small petrol, hybrid, LPG, and CNG cars (up to 1200cc and 400mm) – GST rate slashed from 28% to 18%.

Other Sectors

• Renewables, construction materials, toys, sports goods, leather, wood products, and handicrafts – all moved to the 5% slab (from 12%).

What Stays Costly?

While many essentials are becoming cheaper, luxury and sin goods will remain under the steep 40% tax bracket, ensuring that premium and harmful products do not benefit from the rate cut.

👉 In short, GST 2.0 is designed to simplify taxation, reduce costs on essentials, support agriculture and clean energy, and keep luxuries expensive.