The government’s new GST reforms, also called GST 2.0, came into effect on September 22, 2025, restructuring the tax system into just three slabs — 5% for essentials, 18% for most standard goods, and 40% for sin or ultra-luxury items. The new regime has led to notable price corrections across categories, ranging from consumer electronics and daily essentials to automobiles and services.
The biggest impact will be seen in consumer durables such as refrigerators, televisions, washing machines, and laptops, which have shifted from the higher 28% slab to the standard 18% rate. Similarly, daily-use products such as packaged snacks, shampoos, and toothpaste are now taxed at 5%, making them more affordable for households.
Impact on key categories
| Category | Previous GST Rate | New GST Rate | Expected Effect on Prices |
|---|---|---|---|
| Smartphones & Laptops | 18% | 18% | No major change |
| Refrigerators, Washing Machines, ACs, Microwaves, TVs | 28% | 18% | 8–10% lower |
| Packaged Food & Personal Care (Snacks, Shampoo, Toothpaste, Soap) | 12–18% | 5% | Noticeably cheaper |
| Small Cars & Two-Wheelers | 28% (+ cess) | 18% | Significant price cut |
| Insurance Premiums & Basic Stationery | 18% / 12% | 0–5% | Cheaper or nil GST |
| Salon, Barber, Yoga Services | 18% | 5% | Cheaper for consumers |
For middle-class households, the price cuts in appliances such as refrigerators, televisions, and washing machines will provide the most immediate relief. Daily essentials, particularly packaged foods and personal care items, are now cheaper under the new 5% slab, reducing monthly household budgets.
Students and families will benefit from the removal of GST on basic stationery, while healthcare costs will reduce with lower or zero tax on insurance premiums and essential drugs.
Smartphones and laptops remain taxed at 18%, so no major price correction is expected for these categories. However, a reduction in overall electronic component costs due to simplified slabs could lead to indirect benefits in the future.
FAQ
Q1. Will smartphones get cheaper under GST 2.0?
No. Smartphones remain under the 18% GST slab, so prices will stay largely the same.
Q2. Which items are seeing the biggest drop in price?
Consumer durables such as refrigerators, ACs, washing machines, and televisions are about 8–10% cheaper.
Q3. Are daily essentials included in the cheaper slab?
Yes. Packaged snacks, toothpaste, shampoos, and soaps now fall under 5% GST.
Q4. What about cars and bikes?
Small cars and two-wheelers are now taxed at 18% instead of 28%, making them more affordable.
Q5. Are education and healthcare expenses affected?
Yes. Insurance premiums, stationery, and essential drugs are now cheaper or exempt from GST.
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