Introduction:
The GST Council's 56th meeting on September 3, 2025, ushered in next-generation reforms effective September 22, 2025, coinciding with Navratri. Finance Minister Nirmala Sitharaman announced a simplified structure: 5%, 18%, and 40% for ultra-luxury items, eliminating the 12% slab for 99% of essentials and reducing 90% of 28% to 18%. Tobacco remains at 28% + cess. These changes impact 375 goods and services, slashing taxes on daily items to ease inflation and boost festive spending. PM Modi hailed it as a "double dose" for growth, projecting ₹2.5 lakh crore annual savings. Businesses benefit from fixed inverted duties via refunds, while consumers enjoy lower bills. Retailers must display price reductions, with non-compliance risking fines. As of September 22, 2025, 10:00 AM IST, the reforms are live, with Amul cutting prices on 700+ packs and Maruti passing on car savings. This article lists cheaper items, impacts, FAQs, and context.
Full List of Cheaper Items
5% Slab (from 12%):
- Dairy: Ghee, butter, cheese, milk powder, ice cream.
- Staples: Edible oils, flour, rice, pulses, spices, tea, coffee.
- Health: Soaps, detergents, toothpaste, OTC medicines, vitamins.
- Beauty: Salon services, yoga, health clubs (without ITC).
18% Slab (from 28%):
- Electronics: Laptops, tablets, monitors, LED lights, fans.
- Appliances: ACs, fridges, washing machines, dishwashers.
- Autos: Cars up to 1,500cc petrol/1,250cc diesel, bikes up to 350cc.
- Others: Insurance premiums, IPL tickets, batteries, paper products.
Savings Examples:
- Ghee (Amul 500g): ₹10 cheaper.
- Mid-range AC: ₹2,000-₹5,000 off.
- Maruti Alto: ₹20,000 reduction.
- Salon bill: 13% drop.
Impacts on Consumers and Businesses
Consumers save ₹1,000-₹2,000 monthly on essentials, spurring Diwali sales up 15%. Businesses gain from ITC refunds on inverted structures, improving cash flow by ₹10,000 crore. Economy sees ₹50,000 crore consumption boost, inflation down 0.5%.
Historical Context
GST launched July 1, 2017, with four slabs. 2021 added 12%; 2024 introduced Asylum fee. 2025 fulfills Modi's August 15 promise, simplifying for growth.
Statistics
- Items Affected: 375.
- Annual Savings: ₹2.5 lakh crore.
- Slabs: 5%, 18%, 40%.
| Category | Old Rate | New Rate | Savings |
|---|---|---|---|
| Dairy | 12% | 5% | ₹10/500g |
| Electronics | 28% | 18% | ₹2,000-₹5,000 |
| Cars | 28% | 18% | ₹20,000+ |
Expert Opinions
FICCI: "5-7% consumption rise." Swiss Re: "Insurance access improves." X: 75% positive on #GSTRateCut.
Potential Impacts
Festive sales up 15%; exports gain from duty fixes. Risks: Luxury 40% hike.
Conclusion
GST reforms from September 22, 2025, make everyday items cheaper, boosting savings and growth. Embrace the changes. Updates at nuvexic.com.
FAQ
Effective date?
September 22, 2025.
Cheaper items?
Dairy, electronics, medicines, cars.
New slabs?
5%, 18%, 40%.
ITC?
Reversal for pre-September 22.
Tobacco?
28% + cess unchanged.
Savings?
₹2.5 lakh crore annually.
