Highlights| New GST Rate List 2025: From cars, bikes to TVs and fridges – big price cut kicks-in today

Commenting on the new GST rates, a farmer told news agency ANI that the reforms are beneficial to his community. “The Prime Minister wants to increase the income of farmers and he is taking steps in this regard,” he said.

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#watch | Aligarh, Uttar Pradesh | On implementation of GST reforms, a farmer says, "This reform holds a great benefit for farmers, for example, a pump installation cost Rs 3-4 lakh, while there will be a difference of Rs 30-40 thousand this year. There will be a reduction of Rs… pic.twitter.com/KH2TkxKTD7

— ANI (@ANI) September 22, 2025

Top FMCG companies have announced price cuts on products like shampoos, soaps, baby diapers, toothpaste, razors, and after-shave lotions starting today to pass on GST rate cut benefits to their consumers. Companies such as Procter & Gamble, Emami, and HUL have already released new price lists and shared them with distributors and customers through their websites.

Prices will come down for a range of food items from today. These include milk-based drinks, coffee, condensed milk, biscuits, butter, cereals, corn flakes, 20-litre bottled drinking water, dry fruits, fruit pulp and juices, ghee, ice cream, jam, fruit jellies, ketchup, snacks, paneer, pastries, sausages and meat, and tender coconut water, among others.

Sony India expects this Diwali to be a “turning point” for the company, a CNBC report said. Managing Director Sunil Nayyar said the consumer electronics firm is aiming for double-digit growth, helped by lower prices of large-screen TVs after a GST cut.

Commenting on PM Modi’s GST reforms, Congress president Mallikarjun Kharge took to X on Sunday and wrote, “Narendra Modi ji, instead of the simple and efficient GST proposed by the Congress party, your government imposed the ‘Gabbar Singh Tax’ with nine different slabs, collecting over Rs 55 lakh crore in eight years. Now you are talking about a Rs 2.5 lakh crore savings festival and applying a band-aid after inflicting deep wounds on the public.”

Goa Chief Minister Pramod Sawant welcomed the launch of the next-generation GST reforms by Prime Minister Narendra Modi, saying the move will strengthen India’s path towards Atmanirbhar Bharat 2.0. In a post on X on Sunday, Sawant said the prime minister had asked states to support micro, small, and medium enterprises (MSMEs), improve infrastructure to attract investment, and boost manufacturing competitiveness under the “Vocal for Local, Think Global” vision. “Goa is fully committed to this mission — modernising infrastructure, simplifying processes and empowering our entrepreneurs so that Swadeshi products shine proudly in India and across the globe,” the CM said.

Odisha Chief Minister Mohan Charan Majhi said that India’s new tax reforms put people at the heart of governance. He welcomed the changes, noting that the reforms aim to make taxes simpler, fairer, and more transparent. Majhi highlighted that starting Monday, with the beginning of Navratri, a “GST savings festival” will kick off, offering relief to citizens along with income tax benefits. He added that the reforms will make compliance easier, support small businesses, create jobs, boost spending, and promote domestic products, ultimately benefiting people and strengthening the economy.

Maruti Suzuki India has reduced vehicle prices by up to Rs 1.29 lakh, passing on the GST rate cut and giving extra discounts on small cars to encourage two-wheeler owners to switch to cars.

Analysts at Elara Securities Research say the price cuts are unlikely to hurt the company’s profits, as any loss can be balanced by better operating efficiency. They also noted that about half of the extra price reduction on cars like the Alto is offset by slightly lower discounts this September compared with last year’s Navratri period.

Corrugated box manufacturers have warned that the new GST rate structure has created a steep inverted duty problem, a CNBC ret said. As per them, this could threaten over 20,000 small and medium businesses in the packaging sector with closure.

Apollo Tyres announced that it will lower prices of its products by Rs 300 to Rs 2,000 to pass on the benefit of the GST rate cut, reported CNBC. The new prices will take effect from September 22.

Officials say most of the benefits from the new GST rate cuts, which is about 90%, will reach buyers directly. The government expects prices of consumer durables to drop by around 10%, while the cost of vehicles, including two-wheelers, could fall by 12–15%.

– Ultra-luxury items will now be taxed at a high 40% GST.
– Tobacco and related products will stay in the 28% plus cess category.
– The old four-tier GST system of 5%, 12%, 18%, and 28% will be removed.

While everyday essentials are getting cheaper, luxury items and “sin” goods will cost more.

– Sugary drinks and aerated beverages will also face higher taxes.

– Bike lovers will feel the pinch on bigger motorcycles: models above 350cc, like Royal Enfield’s Himalayan and the 650cc series, will become more expensive.

– Luxury cars and SUVs, especially imported ones, are expected to get costlier under the new “demerit” tax category.

– Premium liquor and imported watches are also included in the higher-tax bracket.

Maharashtra Deputy Chief Minister Eknath Shinde praised Prime Minister Narendra Modi ahead of the new GST rates coming into effect on Monday, calling the reforms a revolutionary step for ordinary citizens. He said the changes will benefit the middle class, women, farmers, traders, small shopkeepers, and others, and will boost consumption, production, and employment. Shinde described the GST reforms as a “Diwali Dhamaka” and said the daily essentials have become much more affordable. He added that even the opposition should support the move, as it aims to benefit all 140 crore people of the country.

As the new GST rates come into effect today, many household items, including cars, bikes, and TVs, will now cost less, giving relief to the middle class. Several food items such as roti, parantha, paneer, and khakra have also been moved to the zero-tax category, making them more affordable for everyone.

Read More Here | What gets cheaper from today? Full list of items with price cuts

From today, life and health insurance premiums will no longer attract GST. The government has cut GST rates on many items and services, calling it a ‘Diwali gift.’ Until now, insurance premiums carried 18% GST, but from tomorrow they will be completely tax-free. This change will make buying life and health insurance policies much cheaper, directly benefiting millions of customers across the country.

Read More Here| Nil GST: Insurance gets 18% cheaper now, yet THESE policyholders won’t benefit – check if you are one of them

Delhi Chief Minister Rekha Gupta said the new GST reforms will boost the national economy and help reduce inflation. She will take part in the ‘GST Savings Festival’ at Totaram Market in Tri Nagar on Monday afternoon. Gupta said Prime Minister Narendra Modi’s move to simplify the tax system and make it easier for citizens feels like an early Diwali for Delhi’s traders. She added that the simpler GST structure will ease the burden of rising prices and give a fresh direction to development in the city.

Prime Minister Narendra Modi took to X and tweeted, “Navratri greetings to all of you. May this sacred festival, filled with devotion, courage, restraint, and determination, bring new strength and new faith into everyone’s life. Jai Mata Di!”

He further added, “This time, this auspicious occasion of Navratri is very special. Along with the GST Bachat Utsav, the mantra of Swadeshi is going to receive new energy during this period. Let us come together in collective efforts for the fulfilment of the resolve for a developed and self-reliant India.”

Baba Ramdev was one of the many people who praised PM Modi on Sunday after his address to the nation on Goods and Services Tax (GST) reforms. Speaking to ANI, Ramdev stated that the decision was an important and effective step in achieving the PM’s dream of Viksit Bharat by 2047. “By providing relief in GST, PM Modi has given the country’s economy a new impetus. This will help people save money, and the country’s economy will reach new heights. This will be an important and effective step towards achieving the Prime Minister’s dream of Viksit Bharat by 2047. Whether it’s providing relief to taxpayers or reducing the GST on most products, which was previously at 18% or 12%, to 5%, the Prime Minister has ensured, for everyone’s well-being, that the people of the country will have money, become prosperous, and thus provide new impetus to the country’s economy,” he said.

He further added that the PM’s repeated appeal for Swadeshi (indigenous) products would help the country move towards self-reliance.

Congress MP Imran Masood reacted to PM Narendra Modi’s address on GST reforms on Sunday, saying the government’s policies have hurt small businesses and the country is now facing the fallout of poorly planned decisions. He recalled that when the reforms were first announced, the government claimed they would strengthen the economy, but in reality, many small traders have been badly affected.

Masood also raised concern over the sharp rise in US H-1B visa fees, warning that it could impact thousands of Indian professionals. He said companies may hesitate to hire from India and urged the government to create better opportunities within the country for those who choose to stay.

Reacting to Prime Minister Modi’s address on the new GST reforms on Sunday, Dr. Harsh Mahajan, Chair of FICCI Health Services Committee told ANI that the changes are a welcome step during the festive season as they clearly take into account the needs of both the healthcare sector and the public. He explained that GST on health and life insurance, earlier at 18%, has now been brought down to zero, making insurance far more affordable. Taxes on medical equipment and diagnostic kits used in hospitals have also been cut to 5%, which will help smaller nursing homes, including those in rural areas, buy better equipment. Even gym equipment, fitness machines, and wellness centre charges will now attract only 5% GST, providing a push to the fitness industry.

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#watch | Delhi | On PM Modi's address to the nation on GST reforms, Chair of FICCI Health Services Committee and Founder-MD of Mahajan Imaging, Dr Harsh Mahajan said, "... In this festive season, we really welcome the institution of these reforms. It seems that the healthcare… pic.twitter.com/izNmpJvC0I

— ANI (@ANI) September 22, 2025

The Indian Pharmaceutical Alliance (IPA) has welcomed the launch of the new Goods and Services Tax (GST) reforms, saying the move will make medicines cheaper and easier to access. Under the changes, GST has been removed from 36 medicines, while most others will now carry a 5% tax. IPA Secretary General Sudarshan Jain told ANI this reform is a major step towards strengthening India’s healthcare system and promoting self-reliance.

He added that September 22 marks an important moment as it coincides with the festive season. According to him, the reforms will not only boost the economy but also ensure that healthcare becomes more affordable for people across the country.

In his Sunday address, Prime Minister Narendra Modi congratulated the nation on the launch of the new GST reforms that will come into effect from today. The changes promise a simpler structure, fairer taxation and lower prices on essentials, with hopes of boosting demand in key sectors during the festive season.

The earlier four-slab GST system of 5%, 12%, 18% and 28% has now been simplified into just two slabs-5% and 18% – making compliance easier for businesses and offering greater clarity for consumers. A new 40% ‘sin tax’ will apply to luxury and harmful goods like alcohol, tobacco, betting and online gaming, ensuring higher revenue without burdening daily needs.

Industries across FMCG, automotive and retail sectors have welcomed the move, confirming they will pass on the benefits of reduced tax rates to buyers. This is expected to fuel spending and drive growth as India heads into the festival season.

From today, daily essentials and food products will become cheaper as major FMCG companies have reduced prices, passing on the benefits of the GST cut to consumers. This move is likely to boost buying and increase sales during the upcoming festival season, starting with Navratri.

The companies have already released new price lists with revised MRPs on soaps, shampoos, baby diapers, toothpaste, razors, and after-shave lotions. Food brands have also cut prices on items such as namkeen, bhujia, sweets, coffee, tea, butter, ghee, ice cream, and chocolates. After facing tough times with high food inflation and slow demand, FMCG firms are hopeful this price cut and festive discounts will mark the beginning of a new growth phase.

The Rajasthan government will host a week-long ‘GST Savings Festival’ from September 22 to 29 to raise awareness about the recent tax reductions, Chief Minister Bhajanlal Sharma announced on Sunday.

Speaking via video conference to cabinet colleagues and legislators, Sharma said the GST rate restructuring is designed to benefit every section of society — from farmers and industries to the middle class.

Everyday essentials to big-ticket buys are set to cost less from Monday as lower GST rates on nearly 375 items kick in. From kitchen staples and medicines to electronics, automobiles and equipment, the GST rate cuts promise direct relief for consumers.

The GST Council, which includes the Centre and states, approved the changes effective September 22 — coinciding with the first day of Navratri.

Addressing the nation on the eve of the rollout, Prime Minister Narendra Modi called it a “GST Bachat Utsav” (savings festival). He added that, combined with the income tax exemption hike to Rs 12 lakh announced in the Budget, the reforms amount to a “double bonanza” for citizens.

Yes. From September 22, IGST on imported goods will be charged at the revised GST rates, except in cases where specific exemptions have been provided.

All individual health insurance policies — including family floater plans and senior citizen health covers — are exempt from GST. The exemption also extends to reinsurance of these individual policies.

No, passenger transport by road will continue to be taxed at 5% without input tax credit (ITC), though operators have the option to choose 18% with ITC. For air travel, economy class remains taxed at 5%, while business and other classes are charged at 18%.

The exemption covers all types of individual life insurance policies, including term insurance, endowment plans and unit-linked insurance policies (ULIPs). In addition, reinsurance of these individual policies is also exempt from GST.