GST 2.0 officially comes into effect today, bringing a major overhaul to India’s tax system. Shoppers across the country will notice visible changes in the prices of everyday goods and services. The new system is designed to make essentials more affordable for households, while increasing taxes on luxury and sin goods.
Ahead of GST 2.0, Prime Minister Narendra Modi addressed the nation on Sunday and said, “From tomorrow, next-gen GST reforms will come into effect. GST bachat utsav will begin, boosting savings for households, shopkeepers, farmers, and businesses, while accelerating India’s growth story.”
Keep reading to know what’s getting cheaper and what’s getting costlier.
Air conditioners, dishwashers, televisions, monitors, and projectors will now be more affordable. These items will now attract a lower 18 percent GST, down from 28 percent.
According to reports, Maruti Suzuki has reduced prices across models like Alto, Swift, Brezza, and Baleno by up to Rs. 1.2 lakh. Suzuki has also cut prices on bikes and scooters up to 350cc, while mid-range motorcycles such as the Gixxer SF-250 are now more affordable.
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Kitchen essentials are also getting cheaper. Amul has announced price cuts on products, including butter, ghee, paneer, chocolates, bakery snacks, and frozen items. Other daily essentials like edible oils, packaged atta and soaps are also set to cost less.
Exercise books, pencils, erasers, and notebooks now attract 0 percent GST. Health and life insurance premiums are also tax-free, easing the financial load on middle-class families.
Luxury and sin goods will become more expensive. Cigarettes, pan masala, gutkha, aerated beverages, and sugar-rich soft drinks have moved into higher GST brackets. Big motorcycles above 350cc, luxury cars, SUVs, imported watches, and premium liquor will also see price hikes.