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

The Congress on Sunday hit out at Prime Minister Narendra Modi, accusing him of taking “sole credit” for the amendments to the GST regime. The party argued that the latest reforms remain inadequate, pointing out that the government has failed to address states’ demand for a five-year extension of GST compensation.

Dismissing the changes as “band-aid after deep wounds”, the Opposition said the Centre owes an apology to citizens for imposing GST on essential items in the first place. Congress leaders claimed that while the government is projecting the reforms as a major relief, the fundamental concerns of states and the public remain unresolved.

“Reform is a continuous process. As times change and the country’s needs change, next-generation reforms are equally necessary. These new GST reforms are being implemented, keeping in mind the country’s current needs and future dreams,” PM Modi said.

Daily essentials and food products will be cheaper from Monday, as leading FMCG companies have slashed prices, extending GST cut benefits to consumers.

The move is expected to lead to a spike in consumption and a surge in sales during the upcoming festival season, which starts with the Navratra celebrations.

FMCG companies have extended benefits of GST 2.0 with immediate reduction on price without any disruption, along with some discounts for festivals as they expect to enter a new growth phase after facing a few challenging quarters that saw persistent food inflation and slow pace of urban consumption.

Companies operating in the space of FMCG products have issued revised price lists with new MRPs on their products, including soaps, shampoo, baby diapers, toothpaste, razors, and after-shave lotions, effective from September 22.

Besides, firms operating in the food verticals have also slashed prices on products as snacks as namkeen and bhujia to sweets, coffee, tea, butter, ghee, ice-cream, chocolates, etc.

The makers have dispatched products with revised MRP tags to inventories of distributors, warehouses of e-coms and shelves of traditional kirana stores, absorbing the tax gap.

Moreover, existing stocks in the market have been aligned with revised new goods & service tax (GST) structure through special trade discounts and QPS schemes.

– via PTI

PM Narendra Modi in his Sunday speech congratulated the nation ahead of the next-generation GST reforms that will kick in from tomorrow. Here are 5 things that you should know about the upcoming reforms:

Simplified structure: The earlier four-slab GST regime of 5%, 12%, 18% and 28% has been streamlined into just two key slabs—5% and 18%—aimed at easing compliance for businesses and improving transparency for consumers.

Introduction of 40% ‘sin’ tax: A special 40% GST will now apply to luxury and harmful products such as alcohol, tobacco, betting and online gaming, ensuring robust revenue generation without affecting essential commodities.

Lower rates on essentials: Everyday household products placed in the 5% bracket are set to become more affordable, providing relief to consumers in categories such as FMCG, food and healthcare.

Mid-range products benefit: Items previously falling under the 12% and 28% slabs will largely move into the 18% category, translating into reduced costs for automobiles, electronics and lifestyle goods.

Broader industry impact: Key sectors including FMCG, automotive and retail have indicated that the rate reductions will be passed on to consumers, a move expected to spur consumption and demand in the festive season.

“It was the result of efforts of Centre and states that the nation was able to get rid of a dozen taxes and ‘one nation-one tax’ dream came true,” PM Modi said in his address to the nation.

PM Modi cited income tax exemption on earning up to Rs 12 lakh, GST reforms and said it is ‘double bonanza’ for poor, neo-middle class, middle class.

“A lot of foreign produced goods have become part of our day-to-day lives. We have to make in India. Be proud of Swadeshi items. We should be proud of Swadeshi products,” says PM.

“I have high expectations from our MSMEs. What we manufacture in India should be world-class,” says PM Modi.

If you include GST savings and Income Tax savings, people of India will be able to save Rs 2.5 lakh crore, says PM Modi.

The dream of ‘One nation, one tax’ was fulfilled after the introduction of GST. The upcoming reforms will make things easier for the businesses in India, PM says in his address.

PM Modi says citizens will be able to buy your favourite items with ease from tomorrow.

PM Modi in his address said GST reforms will accelerate India’s growth story. “From tomorrow, the festival of Navratri is starting. I extend my best wishes to you. From the first day of Navratri, the country is taking an important step towards Aatmanirbhar Bharat. Tomorrow, on the first day of Navratri, Next-Generation GST reforms will come into effect with sunrise.”

PM Modi says India is taking a important step towards ‘atmanirbharta’ on the first day of Navratri with the next-generation GST reforms.

Prime Minister Narendra Modi begins his address to the nation.

PM Modi’s address to the nation will begin in the next 15 minutes.

– The earlier four-slab GST regime of 5%, 12%, 18% and 28% has been streamlined into just two key slabs—5% and 18%—aimed at easing compliance for businesses and improving transparency for consumers.

– A special 40% GST will now apply to luxury and harmful products such as alcohol, tobacco, betting and online gaming, ensuring robust revenue generation without affecting essential commodities.

– Everyday household products placed in the 5% bracket are set to become more affordable, providing relief to consumers in categories such as FMCG, food and healthcare.

– Items previously falling under the 12% and 28% slabs will largely move into the 18% category, translating into reduced costs for automobiles, electronics and lifestyle goods.

– Key sectors including FMCG, automotive and retail have indicated that the rate reductions will be passed on to consumers, a move expected to spur consumption and demand in the festive season.

In about an hour, PM Modi will begin his address to the nation. As per multiple reports, the PM will most likely be speaking about the latest GST reforms and economic self-reliance. However, there has been no official word on the subject of his upcoming address.

Ahead of Prime Minister Narendra Modi’s address to the nation, AAP leader Durgesh Pathak says, “Whenever the PM addresses the nation, every citizen feels scared. At this time, the economy and inflation are at their peak and with folded hands, we will make a humble request: Let us live as we are being made to live.”

– via PTI

Home Minister Amit Shah hailed the latest GST reforms as one of the most significant economic changes in independent India. In an interview with Network18, the Home Minister described GST 2.0 as a “multi-dimensional reform” and the first of such scale since independence.

Amit Shah said, “Tax has never been lower.. GST reforms will benefit a lot of areas. It is a big step which has increased the confidence of people. If people pay tax and the tax base widens, then the government reduces tax to benefit people.”

– Food items (12% to 5%): Fruit juices, butter, cheese, condensed milk, pasta, packaged coconut water, soya milk drinks, nuts, dates, sausages.

– Medical items (12% to 5%): Medical-grade oxygen, gauze, bandages, diagnostic kits.

– Zero GST rate: Ultra-high temperature milk, chhena/paneer, pizza bread, khakra, plain chapati/roti, erasers.

– Household goods (12% or 18% to 5%): Hair oil, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, other common-use household articles.

These revisions are expected to ease household expenses and bring significant relief to consumers on everyday essentials.

In a post on X, Congress leader Jairam Ramesh raised questions about the subject of PM Modi’s address to the nation today. “Will the PM…speak of the increasingly fraught Indo-US relationship? Will he address the concerns of lakhs of Indian H1B holders? Will he provide some assurances to the crores of farmers and workers who stand to lose their livelihood due to his good friend’s tariffs? Or will he just repeat what we all know on the new GST rates – worked out under desperation and which become effective tomorrow?”

Finance Minister Nirmala Sitharaman had said that the latest reforms are a “Diwali gift” for consumers. Sitharaman said the move will lower costs for the middle class and also make business operations smoother under GST.

“This reform is not just about rationalising rates. It is also about ease of living and structural reforms. We have reduced slabs to just two and addressed issues related to compensation cess,” FM Sitharaman had said.

Modi on Friday described the latest GST reforms as more than mere technical tweaks. He called them bold measures designed to enhance the ease of living, ease of doing business and ease of investing in India.

In a post on X, PM wrote, “By lowering rates on everyday foods and packaging, these reforms make groceries more affordable, boost MSMEs, support farmers and enhance India’s global food competitiveness.”

A day earlier, Prime Minister Modi inaugurated and laid the foundation stone of projects worth Rs 34,200 crore in Gujarat’s Bhavnagar. Highlighting India’s maritime ambitions, Modi described ports as the “backbone of the nation’s rise as a global maritime powerhouse”. He noted that the government had taken a “historic decision” by classifying large ships as infrastructure to strengthen the sector. During the inauguration, the PM said, “Whether chips or ships, we must make them in India.”

A day before the new GST rates come into effect in India, Prime Minister Narendra Modi will address the nation at 5 pm on Sunday. There are no official details about the subject of Modi’s address but it is expected that he will speak on the upcoming reforms and pitch once again for economic ‘atmanirbharta’.