From shampoos to biscuits, 375 items get cheaper under GST 2.0

The long-awaited overhaul of the goods and services tax (GST) structure will take effect on Monday, September 22, 2025, bringing relief on a wide range of daily-use items while raising levies on luxury products and so-called “sin goods”.

- OUR CORRESPONDENT

The GST Council had earlier approved the rationalisation plan, which reduces the number of tax slabs and lowers rates on 375 items, spanning food, personal care, household goods, electronics, medicines, and automobiles. At the same time, higher rates will apply to aerated drinks, premium vehicles, tobacco, and related products.

Households will notice price reductions on a broad basket of staples. The list includes beverages containing milk, biscuits, butter, cereals, corn flakes, fruit pulp, ghee, jam, ketchup, paneer, pastries, sausages, and tender coconut water. Ice creams, dry fruits, fruit jellies, and namkeen are also part of the revised lower slab.

Personal care items will also become cheaper. Toothpaste, shampoos, shaving creams, soaps, hair oils, face creams, and talcum powders have all been moved into the reduced GST category.

Drinking water packed in 20-litre bottles, a common household purchase, is also among the items benefiting from the revised rate.

For consumers purchasing big-ticket household electronics, the revised GST will ease prices of televisions, washing machines, dishwashers, and air conditioners. Industry analysts expect strong demand ahead of the festive season, with several companies already communicating discounts.

Medical costs are also expected to come down. GST on diagnostic kits and glucometers has been lowered to 5 per cent, leading to revised maximum retail prices across pharmacies. According to a PTI report, the government has directed chemists to pass on the benefit by updating labels or offering medicines at reduced rates.