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

Kotak Securities says that, supported by the GST cut and festive season tailwinds, it expect the domestic two-wheelers wholesale volumes to witness growth as against the flattish trend seen in H1FY26.

“Similarly, we expect domestic passenger vehicle segment volume growth to accelerate from H2FY26 onwards. Auto ancillary companies having higher exposure towards domestic OEMs stands to benefit from expected rise in automobile demand” Kotak Securities said.

According to PTI, the government estimates that the purchase of tractors up to 1800 cc will now bring savings of around Rs 40,000 as the GST rate has been cut to 5% from the earlier 12–18%. Two-wheeler buyers will also see relief, with bikes and scooters up to 350 cc becoming cheaper by about Rs 8,000.

Electronics and home appliances are also covered under the tax cuts. A television set above 32 inches will now cost Rs 3,500 less, while an air conditioner will be cheaper by Rs 2,800. The GST on these items has been slashed from 28% to 18%.

Indian Pharmaceutical Alliance (IPA) highlighted that the GST reforms are set to deliver major benefits for the Indian pharmaceutical sector.

1)By reducing the tax burden on medicines, the reforms will lower prices and make treatments more affordable, ensuring equitable access and supporting the broader goal of universal healthcare and preventive treatment.

2) The new framework is expected to boost domestic manufacturing by encouraging local production of essential, specialty, and complex generic drugs.

3)This aligns with the government’s Atmanirbhar Bharat vision, reducing India’s dependence on costly imports.

4) Harmonized GST structure will simplifies taxation by removing multiple levies, easing compliance for companies. With streamlined processes in place, pharmaceutical firms will be able to focus more on innovation and efficiency, ultimately improving both industry growth and patient outcomes.

The GST next-gen reforms, which kicked in from Monday, will lead to a saving of 13 per cent in the household bills for groceries and daily essentials, while a small car buyer could save around Rs 70,000, as per a report by PTI.

According to government estimates, stationery, clothing, footwear and medicines purchases would bring in savings in the range of 7-12%, while the savings would go up to 18% in the case of individual health and life insurance policies, which have been exempt from GST effective Monday.

CII Director General Chandrajit Banerjee said, “CII believes the package framed by the Prime Minister as a GST Bachat Utsav will put more money in consumers’ hands, ease compliance for MSMEs, lower input costs for industry, and strengthen India’s growth momentum.”

According to a PTI report, the Confederation of Indian Industry (CII) described the next-generation GST reforms as “people-centric.”

FICCI President Harsha Vardhan Agarwal said, “The streamlined tax structure, combined with a renewed emphasis on Swadeshi, as outlined by the Prime Minister Narendra Modi, will support domestic production and manufacturing, in keeping with the vision of Aatmanirbhar and Viksit Bharat.”

As per a report by PTI, He added that the revised framework will ease compliance for MSMEs, boost the cost competitiveness of Make in India products, and improve overall ease of living.

Telangana Chief Minister Revanth Reddy, while addressing a press conference, demanded that the Central government compensate states for revenue losses arising from the recent GST rate rationalisation for a period of five years.

He said, “If there is any revenue fall due to the change in slabs, the Central government should fill that gap, because state plans are based on the expected income. Now that the Centre has taken a decision on rate rationalisation, it is the Centre’s responsibility to fill the revenue gap for all the states that may face a shortfall.”

According to PTI, he also recalled that when GST was introduced, the Centre had promised to compensate states for revenue losses if the tax growth rate fell below 14%.

“Apart from Navratri, the budget utsav has begun. There is a wave of happiness and celebration among people wherever you see… GST rates have been reduced, which will benefit all sections of society. But we are celebrating something else. These reforms can boost the GDP by 0.8%… Our path towards a Viksit Bharat goes through self-reliance. It has been welcomed by all sections of the society,” Puri told news agency ANI.

The GST reduction on renewable energy equipment is expected to save investors up to Rs 1.5 lakh crore by 2030, Union Minister Pralhad Joshi said on Monday. The announcement comes as the new GST rates take effect on the first day of Navratri. The GST cut lowers the tax on renewable energy equipment from 18% to 5%, giving a major boost to India’s goal of reaching 500 GW of renewable energy by 2030. Joshi noted that India plans to add around 300 GW of renewable capacity by 2030, and even a small 2–3% cost reduction could free up Rs 1–1.5 lakh crore for investment in the sector.

Union Minister Hardeep Singh Puri responded to Congress MP Jairam Ramesh’s comments about the GST reforms, saying ” One needs to ask him, if tariff negotiations were not going on with a country, should the GST rates not have been reduced?” Puri added that the government’s push for self-reliance and promotion of “swadeshi” products is not new, but the GST reforms give it a fresh boost. Puri also mentioned that feedback on the reforms has been very positive and dismissed past criticisms from the opposition as ineffective.

Union Minister Ashwini Vaishnaw thanked Prime Minister Narendra Modi on Monday, saying that the new changes will help households save money. Vaishnaw met shopkeepers in the national capital to spread awareness about the next-generation GST reforms. He highlighted that the tax cuts on most daily-use items will benefit both shopkeepers and customers, and called on people to use more “swadeshi” products in their everyday life.

Union Minister of State for Finance, Pankaj Chaudhary, slammed the Congress party after the GST reforms came into effect, saying the move could not be implemented earlier because people did not trust the opposition. He added that the BJP worked to ensure public confidence in the new system. Chaudhary noted that Congress had tried to introduce similar reforms about 10 years before 2014, but a lack of trust from states prevented it from happening. He said the current reforms have been designed to ease the financial burden on the people.

Dishwasher prices are dropping following the GST rate cut to 18%. BSH Home Appliances has lowered prices by up to Rs 8,000. Its entry-level dishwasher will now cost Rs 45,000, down from Rs 49,000, while the top model is reduced to Rs 96,500, Rs 8,000 less than before.

Union Minister Shivraj Singh Chouhan said the GST reforms have made everyday products more affordable for common people starting today. He noted that small tractors used for gardening could become cheaper by up to Rs 23,000, while large tractors could see price cuts of up to Rs 63,000. Combined harvesters may cost up to Rs 1.87 lakh less.

Chouhan added that agricultural products, food items, and clothes will also be more affordable, calling it a “Bachat Utsav” where people can save money and use it elsewhere. He said government representatives will help create awareness so the benefits reach everyone. Following PM Modi’s message, he encouraged people and traders to buy and sell “Swadeshi” products.

The new GST rates that have kicked in from today and the new structure has become much more simplified. Earlier the goods use to fall under four GST slabs – 5%, 12%, 18%, and 28%. Now, the structure will have just two slabs – 5% and 18%. All the daily household items and essentials will fall under the 5% slab or will be completely exempted. Simultaneously, the luxury goods and those that fall under the “sin goods” category like yachts, private aircrafts will fall under the 40% category.

Refrigerators are now more affordable following the GST rate cut. Godrej Appliances plans to lower fridge prices by 7–8%, while LG is expected to reduce prices by 8–9%, according to a report by the Economic Times.

The GST rate cut has boosted automobile stocks, especially the two-wheeler makers. Between August 14 and September 19, the market value of 11 auto companies rose by 15%, or Rs 3.1 lakh crore, with two-wheeler firms alone adding Rs 90,000 crore. Analysts say this jump suggests either a long-term 15% rise in earnings per share or a big near-term boost, both of which seem overly optimistic.

According to estimates, ICE two-wheeler companies will need to sell 34 million extra units between FY2027 and FY2036, and 58 million more units between FY2027 and FY2041 compared to pre-GST cut projections. This would mean total sales of 52 million units by FY2036 and 93 million by FY2041, up from just 16 million units sold in FY2025.

Congress MP Jairam Ramesh while speaking to news agency ANI today slammed PM Modi’s address on GST reforms, saying the government tends to turn everything into an event. He added that the announcement appears to be a distraction and argued that the GST reform should have been implemented eight years ago. He also pointed out that the economy has already faced major shocks from GST and demonetisation.

Prime Minister Narendra Modi during his trip to Arunachal Pradesh, said this trip was special, as he got to see the state’s scenic mountains on the first day of Navratri. He added that the next-generation GST reforms have started, marking the beginning of the GST Bachat Utsav. Modi also highlighted new projects in sectors like power, health, and tourism being implemented in the state.

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#watch | Itanagar, Arunachal Pradesh | Prime Minister Narendra Modi says, "My visit to Arunachal has become special. On the first day of Navratri, I got to witness such beautiful mountains... Next-generation GST reforms have been implemented today. GST Bachat Utsav has begun...… pic.twitter.com/KTJ2gJYUo2

— ANI (@ANI) September 22, 2025

Uttar Pradesh Deputy Chief Minister Keshav Prasad Maurya criticised Rahul Gandhi, Akhilesh Yadav, and Tejashwi Yadav for opposing the new GST reforms, calling their stance “foolish” and an example of negative politics, a PTI report said. He said the opposition leaders fail to see the benefits that GST savings will bring to 140 crore people across the country.

Blue Tokai Coffee Roasters had already lowered the prices at all its cafes and on its entire menu, becoming the first specialty coffee brand in India to pass on the benefits of the GST Council’s recent tax changes.

The GST on cement, marble, granite, and other building materials has been reduced from 28% or 12% to 18% or 5%. This move will reduce construction costs, making homes more affordable and supporting real estate projects.

Air conditioners also get cheaper from today after GST on ACs was cut from 28% to 18%. Major companies including Voltas, Daikin, Godrej, Panasonic, Haier, and LG have announced the price reductions.

– Godrej Appliances has cut prices by Rs 8,550 to Rs 12,450 on cassette and tower ACs, and by Rs 3,200 to Rs 5,900 on inverter split ACs.

– Haier reduced prices of its Gravity 1.6 ton inverter AC by Rs 3,905 to Rs 46,085, and its Kinouchi AI 1.5 ton 4-star AC by Rs 3,202 to Rs 37,788.

– Daikin’s 1 ton 5-star inverter split AC now costs ₹18,890, down from Rs 20,500.

– LG has also slashed entry-level prices. Its 1 ton 3-star inverter split AC is now Rs 32,890 after a cut of Rs 2,800, while the 1.5 ton model is down by Rs 3,600 to Rs 42,390, and the 2 ton split AC by Rs 4,400 to Rs 55,490.

Starting today, TV prices fall by up to Rs 85,000 as companies pass on the benefits of lower GST to customers. The GST on TVs larger than 32 inches has been reduced from 28% to 18%.

Sony, LG, and Panasonic have already released their new price lists with major reductions. Sony has cut prices on its Bravia models by Rs 5,000 to Rs 71,000 for TVs sized 43 to 98 inches. LG has reduced prices by Rs 2,500 to Rs 85,800 on models between 43 and 100 inches. Panasonic has lowered prices by Rs 3,000 to Rs 32,000 across its range.

Agriculture Minister Shivraj Singh Chouhan has asked tractor and farm equipment companies to pass on the benefits of the GST rate cut to farmers from September 22. The move will reduce tractor prices by Rs 23,000 to Rs 63,000, depending on the model.

After meeting industry representatives, Chouhan said the GST cut will also make farm machinery at Custom Hiring Centres more affordable, and rental charges should be lowered as well.

Samajwadi Party president Akhilesh Yadav on Sunday targeted the BJP government by questioning what happened to the GST collections gathered over the past eight years. Yadav suggested several possibilities in a social media post, asking if the collected money would be returned in cash to people’s homes, adjusted against future insurance premiums, directly transferred into bank accounts, or deducted from the Rs 15 lakh that the BJP had once promised.

He also wondered if the funds would be linked to subsidised LPG cylinders, distributed through alleged political funding received by the BJP, handed out before elections, used to waive school fees, or spent on free healthcare and medicines for the poor and elderly. Yadav concluded by saying it might simply be added to what he called the BJP’s “fund of promises.”

The price of Apple’s iPhone 17 Pro Max (2TB model) is now higher than a Royal Enfield 350cc bike. Thanks to the GST rate cuts announced by the Government of India, Royal Enfield motorcycles have become much cheaper. The new GST system with only two slabs, 5% and 18%, comes into effect today. With this change, the cost of a Royal Enfield 350cc has dropped below the price of Apple’s top-end iPhone.

Read More Here: Royal Enfield Hunter, Bullet, and Classic now cost less than Apple iPhone 17 Pro Max

As mentioned earlier, the prices of daily essentials and food items will fall form today as FMCG companies have slashed the rates to pass on the benefits of GST 2.0 to consumers. The move, starting on the first day of Navratri and just before Diwali, is expected to lift demand and sales.

Click below to know which FMCG companies are offering the biggest rate cuts:

GST new rates kick in: From Amul to ITC, which FMCG giant slashed prices the most?

Union Home Minister Amit Shah further took to X and wrote, “Modi government’s gift of Next Gen GST reform to all the mothers and sisters of the country on the auspicious occasion of Navratri! ” Read his full tweet here:

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Union Home Minister Amit Shah tweets, "Modi government's gift of Next Gen GST reform to all the mothers and sisters of the country on the auspicious occasion of Navratri! Modi ji's promise to the countrymen regarding GST reform has been implemented across the entire country… pic.twitter.com/f6gtBsykkh

— ANI (@ANI) September 22, 2025

Union Home Minister Amit Shah took to X on Monday and said that the new GST reforms will benefit every household by making many dairy products tax-free and cutting taxes sharply on daily essentials like soap, toothpaste, hair oil, and shampoo. He added that zero GST on life insurance, health insurance, senior citizen policies, 33 life-saving drugs, and diagnostic kits, along with lower taxes on oxygen, surgical tools, and medical, dental, and veterinary devices, will help people save more.

Shah also highlighted that farmers will gain from reduced GST on agricultural equipment and fertilizers, while vehicle buyers too will find relief. He noted that the reforms will strengthen self-reliance and encouraged people to use indigenous products in their daily lives.