New Delhi, September 22 (Daily Kiran News): The government’s revised Goods and Services Tax (GST) rates came into effect today, offering significant relief to consumers across age groups and communities. Implemented from the first day of Navratri, the new system consolidates rates mainly into two slabs — 5% and 18%, while luxury items continue to attract 40% tax. Cigarettes, tobacco, and related products remain under separate taxation.
With the changes, prices of nearly 400 items — including kitchen essentials, medicines, electronics, vehicles, and FMCG goods — have dropped. Major companies have announced price cuts to pass on the benefit to customers. Everyday items such as soap, detergent, biscuits, ghee, edible oils, diapers, coffee, butter, cheese, and dry fruits are now taxed at 5% instead of 12–18%. Many medicines, diagnostic kits, and medical devices also move to the lower 5% slab.
The government has reduced cement GST from 28% to 18%, while appliances like TVs, ACs, refrigerators, and washing machines now fall under the 18% slab instead of 28%. For automobiles, small cars attract 18% GST, while larger vehicles are at 28%. Earlier, SUVs and MPVs carried 28% GST plus a 22% cess; this total burden is now reduced to around 40%.
Service sectors like salons, gyms, spas, and fitness clubs now face just 5% GST, down from 18%. Personal care products — including hair oil, shampoo, toothpaste, shaving cream, and aftershave lotions — also fall into the 5% slab.
Prime Minister Narendra Modi, addressing the nation on the eve of the rollout, said these “next-generation GST reforms will boost India’s growth story, improve ease of doing business, and attract more investment.” He added that tax relief in GST and income tax over the last year had saved citizens nearly ₹2.5 lakh crore, increasing consumer confidence and market demand.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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