The Goods and Services Tax (GST) Council announced today that only two rates will remain from September 22 – 5 per cent and 18 per cent. There is a special rate of 40 per cent which will apply only to pan masala, cigarette, aerated water with added sugar, carbonated beverages, etc.
We look at what has become cheaper:
Hon’ble Prime Minister Shri @narendramodi announced the Next-Generation GST Reforms in his Independence Day address from the ramparts of Red Fort.
Working on the same principle, the GST Council has approved significant reforms today.
These reforms have a multi-sectoral and… pic.twitter.com/NzvvVScKCF
— Nirmala Sitharaman Office (@nsitharamanoffc) September 3, 2025
Milk, roti, paneer, ghee: 5 per cent
Biscuits, sauces, pasta: 5 per cent
Dry fruits, pizza bread: 5 per cent
Oxygen, glucometers, kits: Nil
Critical drugs, bandages: 5 per cent
Soap, shampoo, toothpaste: 5 per cent
Candles, toys, furniture: 5 per cent
Solar, wind devices: 5 per cent
Biogas equipment: 5 per cent
Textiles, TV, cement rationalised to 5 per cent or 18 per cent, based on item classification.
Small cars, bikes: 18 per cent
However, there is a special tax slab of 40 per cent on luxury cars, big SUVs, cigarettes, tobacco, gutkha, and carbonated drinks with added sugar, etc.
There is also exemption of GST on all individual life insurance policies whether term life, ULIP or endowment policies and reinsurance thereof to make insurance affordable for common people and increase insurance coverage in the country.
GST has been removed from Ultra-High Temperature (UHT) milk, prepackaged and labelled chena or paneer, and all Indian breads such as chapati, roti, paratha, parotta, etc.