The latest GST rate cuts have brought a “feel-good” factor for India’s middle class. Daily essentials, beauty products, medicines, and kitchen items are now cheaper as the government slashes GST by up to 10%. The revolutionary GST reform will come into effect from 22nd September 2025, reducing the GST slabs from four (5%, 12%, 18%, 28%) to just two, while luxury items will attract 40% GST.
Here’s a quick Q&A on the 11 most important things you should know:
1️⃣ ACs, TVs, Monitors, and Dishwashers – GST Rate?
After the cut, ACs and dishwashers have GST reduced from 28% → 18%, while TVs and monitors of all sizes now attract a uniform 18% GST. For example, a ₹40,000 AC will now cost ₹36,000, and a ₹1 lakh TV will cost ₹90,000.
Gold Rate
18 Aug 2025
2️⃣ Daily food items like parathas and paneer – GST?
Essentials such as parathas, paneer, and similar daily-use items are now GST-free.
3️⃣ Spectacles and Goggles – GST Rate?
Prescription glasses and goggles now attract 5% GST (earlier 12% and 18%), while other eyewear remains at 18%.
4️⃣ Face powders and shaving creams – GST Rate?
GST on face powders, shaving creams, lotions, toothbrushes, and hair oil is reduced from 18% → 5%.
5️⃣ ‘Other non-alcoholic beverages’ – Why 40% GST?
To rationalize rates and maintain uniformity, certain luxury or premium beverages are taxed at 40% GST. This ensures proper classification and avoids disputes.
6️⃣ Medicines – GST Rate?
All medicines now attract a concessional 5% GST, with some items at 0%. Medical devices used in treatment, surgery, dental, and veterinary care also attract 5% GST, with select exemptions.
7️⃣ Three-wheelers – GST Rate?
Three-wheelers under HSN 8703 now attract 18% GST, down from 28%.
8️⃣ Bicycles and parts – GST Rate?
GST on bicycles and their components is reduced from 12% → 5%.
9️⃣ Why reduce GST on face powders and shampoos?
These are daily-use products for most people. While luxury brands also benefit, the main goal is to simplify the tax structure and ensure uniformity across price ranges.
Beauty & fitness services – GST Rate?
Services like gyms, salons, barbers, fitness centers, and yoga classes now attract 5% GST without ITC, down from 18%.
1️⃣1️⃣ Ambulances – GST Rate?
Vehicles approved as ambulances, equipped with all necessary fittings and accessories, now attract 18% GST, down from 28%.
1️⃣2️⃣ Health & Life Insurance – GST Rate?
GST on health and personal life insurance premiums is now fully exempt, down from the earlier 18%.
Finance Minister Nirmala Sitharaman confirmed that these changes take effect 22nd September 2025, making over 175 items cheaper for consumers.
