New GST rates: What's cheaper, what's costlier, full list

The GST Council has approved a major overhaul of the Goods and Services Tax (GST) structure. Effective from September 22, the new regime simplifies the tax slabs to 5% and 18%, slashes rates on a wide range of daily-use and consumer goods, and fully exempts life and health insurance from GST.

The move is expected to drive economic growth and provide relief to middle-class households.

Below is the full list of what becomes cheaper and what becomes costlier, effective from the first day of Navaratri.

What gets cheaper

Essential food & beverages

0% GST on:

Plain chapati/roti

Paratha (down from 18%)

UHT milk, chena/paneer

5% GST (down from 12–18%) on:

Butter, ghee, cheese, condensed milk

Dry fruits, figs, dates, avocados

Jam, jellies, sugar confectionery

Cornflakes, cereals, pastries, biscuits

Namkeen, bhujia, mixtures

Tender coconut water, fruit pulp, juices

Ice creams and milk-based beverages

Drinking water (20-litre bottles)

Personal care & household items

5% GST (down from 18%) on:

Shampoo, hair oil, face powder

Toothpaste, toothbrush, soap

Talcum powder, shaving cream

5% GST (down from 12%) on:

Feeding bottles, kitchenware, tableware

Combs, umbrellas, bicycles

Bamboo furniture, utensils

Healthcare and insurance

0% GST on:

Life and health insurance premiums (was 18%)

33 life-saving/cancer drugs (was 12%)

5% GST on:

Spectacles, goggles, diagnostic kits

Medical-grade oxygen, thermometers

Education supplies

0% GST on:

Exercise books, notebooks

Pencil sharpeners, erasers, crayons, maps

Construction & housing

18% GST on:

Cement (down from 28%)

Vehicles & automobiles

18% GST (down from 28%) on:

Small petrol cars (1200 cc), small diesel cars (1500 cc)

Motorcycles 350 cc

Buses, trucks, ambulances, three-wheelers

Consumer durables and electronics

18% GST (down from 28%) on:

ACs, refrigerators, washing machines

Dishwashers, TVs (all sizes), monitors, projectors

Textiles, footwear, handicrafts

5% GST (down from 12%) on:

Man-made fibre, yarn

Leather products, handicrafts

Clothing & footwear priced under Rs 2,500

Agriculture inputs

5% GST (down from 12–18%) on:

Tractors, tyres, farming tools, irrigation equipment

 What Gets Costlier

Tobacco and related products

40% GST proposed on:

Pan masala, gutkha, bidis, cigarettes, zarda

These items will temporarily remain at 28% + cess until COVID compensation loans are repaid (expected end of 2025)

Sugary and aerated drinks

40% GST (up from 28%)

Luxury vehicles & leisure goods

40% GST on:

Motorcycles 350 cc

High-end cars (petrol 1200 cc, diesel 1500 cc or length 4000 mm)

Yachts, personal-use aircraft, racing cars

Leisure services

40% GST on:

Casinos, lotteries, gambling

Online gaming

Horse racing and racing clubs

Key highlights

Four tax slabs (5%, 12%, 18%, 28%) simplified to two: 5% & 18%