From Today, Paneer, Soap, Shampoo, and Cars Become Cheaper: New GST Rates Take Effect, See How Much You Save
New Delhi: From September 22, India’s new GST rates have come into effect, making everyday items and several services more affordable. The government had announced GST rate cuts on September 3, which are now officially implemented.
New GST Slabs
The GST system has been simplified to only two slabs: 5% and 18%, approved in the 56th GST Council meeting, to make taxation easier and more transparent.
Relief on Everyday Items
Graphics show how much cheaper items like paneer, ghee, soap, shampoo, and cars have become. Some companies have not yet released updated prices, so estimated MRPs are shown. These figures do not include additional discounts offered by sellers, meaning market prices could be even lower.
Hotels, Gyms, Flights, and Cinema Also Cheaper
GST on hotel rooms, beauty, and health services reduced from 18% to 5%.
Cinema tickets up to ₹100 now attract 5% tax, down from 12%.
Tickets above ₹100 will have 18% GST.
Hotel rooms with rent under ₹1,000 remain tax-free.
Rooms priced between ₹1,000–₹7,500 now attract 5% GST, down from 12%.
Premium hotel rooms above ₹7,500 will have 18% GST.
Some Items Will Be More Expensive
A new 40% GST slab has been introduced for luxury and leisure items, including paan masala, tobacco, and certain cars and bikes.
Previously, some of these items had a combined tax of 45%; now it has been reduced to 40%.
Petrol cars over 1200 cc and longer than 4 meters, diesel cars over 1500 cc and 4 meters long, and motorcycles above 350 cc fall under this new slab.
Impact on the Economy
The government claims that GST 2.0 will provide relief to consumers, make business easier, and boost the economy.
Finance Minister Nirmala Sitharaman said the reforms are expected to inject about ₹2 lakh crore into the economy.
Chief Economic Advisor V. Anantha Nageswaran added that consumers will have more purchasing power, stimulating the demand-production cycle and increasing GDP growth.
Economist and Alara Capital EVP Garima Kapoor noted that these reforms will give a 1%-1.2% boost to consumption demand, which could increase GDP growth over the next 4–6 quarters.