Torus Digital | 5 sept, 2025

GST Shakeup: Essentials Get Cheaper, Your Favourite Luxuries Just Got Costlier!

A bold tax reform that lightens your daily bills but tightens luxury splurges.

From 22 Sept 2025,
- 4 Slabs: Nil, 5%, 18%, 40%

- Most 12% & 28% categories now 5% or 18%

- Luxury & sin items remain at 40%

New GST Structure at a Glance 

- UHT milk, Indian breads: 5% → Nil

- Butter, ghee, cheese, condensed milk: 12% → 5%

- Personal care basics: Hair oil, toothpaste, soap, shaving cream → 5%

- Nuts & dry fruits, baby items, packaged foods: 12% → 5% 

What Gets Cheaper: Daily Essentials

Agriculture & Fertilisers Relief

- Fertilisers: 12–18% → 5%

- Tractor tyres & parts: 18% → 5%

- Tractors & farm equipment: 12% → 5%

Explore Agrochemical Sector

Healthcare & Education Benefits

- Thermometers, medical devices: 18% → 5%

- Health & life insurance: Now Nil

- Education supplies: Maps, notebooks, pencils → Nil

Explore Healthcare Sector

Electronics & Automobiles

- Air conditioners, large TVs, monitors, dishwashers: 28% → 18%

- Smaller cars (≤1200 cc, petrol/hybrid/LPG/CNG): 28%→18%

Explore Automobile Sector

Renewable energy items, construction materials, toys, handicrafts: 12% → 5% 

Other Goods & Sectors

What Stays High or Becomes Costlier

- Pan masala, tobacco, cigarettes, gutkha: Still high, plus cess.

- Sweetened & flavoured drinks: 28% → 40%

- Tax now calculated on Retail Sale Price → Slightly higher burden

- Essentials & daily-use products get relief

- Luxury & sin items still high to curb consumption

- GST simplification ensures easier compliance and affordability

Key Takeaways
Open a Demat Account
Follow Our Instagram