GST 2.0: What Gets Cheaper Today? Full List of Price Drops

While welcoming and celebrating the festive season, Indians are also welcoming the new GST rates that came into effect today (September 22). From today, household items, including cars, bikes, TVs, and many more, will become cheaper, comforting middle-class people for the upcoming festivals. This is not all, the food items like roti, parantha, paneer and khakra have been placed in the zero-tax category as of September 22.

The Finance Minister, Nirmala Sitharaman, announced the new tax system earlier this month. The new system has simplified GST rates into just two main slabs: 5% and 18%. Most items have seen a cut in tax rates, but a few products will now cost more. For instance, the clothes priced above Rs 2,500 were taxed at the rate of 12% before, but now they will be taxed at 18%.

New GST Rates- Full List of Price Cuts on Items as of September 22 is here:

Items for mass consumption include chena, paneer, ketchup, jam, pizza bread, Khakhra, chapathi and UHT (Ultra-High-Temperature) milk, which will fall in the 0% or nil GST category.

Medicines previously taxed at 12% will now be reduced to 5%, with 36 essential life-saving drugs for cancer, genetic disorders, rare diseases and heart problems becoming fully tax-free. Notable examples include Agalsidase Beta, Imiglucerase, Eptacog alfa, Onasemnogene abeparvovec and Atezolizumab, among others.

Stationary Items like pencil sharpeners, erasers, uncoated paper, paperboard, graph books, exercise books and notebooks will also have a 0% GST rate. Additionally, maps, wall maps, atlases and globes will also cost nil GST.

Must Read: How Much GST on Gold is Charged in India? 2025 Update

Items With 5% GST Rate From Today- Complete List:

The products under the 5% tax category are budget-friendly for households and healthcare. The recent Indian tax reforms cover food, personal care products, medicines, medical devices, packaged beverages, wooden articles, leather goods and some handicrafts. This initiative aims to relieve the middle class, boost consumption and support small businesses, which affect various essentials of daily life. The products included are:

• Dairy products: condensed milk, ghee, butter, cheese, spreads.
• Dry fruits and nuts: almonds, cashews, dates.
• Dried fruits: figs, guava, dried mango, citrus, pineapples.
• Starches, malt, inulin.
• Medical supplies: oxygen, iodine, anesthetics, hydrogen peroxide, acids.
• Medicines: life-saving drugs, Ayurveda, Unani, Homeopathy.
• Diagnostic kits, surgical gloves, bandages, gauze.
• Health and personal care: soaps, shampoos, toothpaste.
• Baby products: feeding bottles, nipples, plastic beads.
• Candles and handcrafted candles.
• Packaged food: cornflakes, pasta, biscuits, cakes, sauces, ice cream, chocolates.
• Beverages: coconut water, fruit juices, tea, coffee extracts.
• Seafood: preserved/processed fish, crustaceans, molluscs.
• Animal fats and oils: margarine, lanolin, glycerol.
• Wooden items: furniture, handicrafts.
• Leather goods: handbags, purses, gloves.
• Cork products and artware.
• Handmade paper and packaging: cartons, bags.
• Rubber bands and bidi wrapper leaves.
• Rear tractor tyres and tubes.
• Fitness & wellness: gym equipment, yoga services.

Also Read: Old vs New Tax Regime 2025: Key Differences & Best Choice

Complete List of Items With 18% GST Rate From Today

• Portland, aluminous, slag, and super sulphate cements (coloured or clinker form).
• Bidis
• Lignite (excluding jet)
• Peat (including litter)
• Menthol products (excluding natural menthol) such as menthol, peppermint oil, and other odour preparations (excluding particular incense).
• Biodiesel (excluding that supplied to Oil Marketing Companies for blending).
• New pneumatic rubber tyres (excluding bicycle, cycle-rickshaw, tractor rear, and aircraft tyres).
• Chemical wood pulp (dissolving grades).
• Uncoated paper and paperboard for writing/printing (excluding some notebooks).
• Uncoated kraft paper and paperboard (excluding specific headings).
• Other uncoated paper and paperboard (not further processed).
• Greaseproof and glassine paper.
• Composite paper and paperboard (unglued or uncoated).
• Paper and paperboard coated with kaolin or inorganic substances.
• Corrugated or creped paper and paperboard.
• Apparel and accessories (knitted/crocheted) valued over Rs 2500 each.
• Apparel and accessories (not knitted/crocheted) valued over Rs 2500 each.
• Made-up textile articles above Rs 2500 (excluding worn clothes).
• Spark-ignition internal combustion engines (excluding aircraft).
• Compression-ignition engines.
• Engine parts for the above engines.
• Fuel, lubricant, or cooling pumps for internal combustion engines.
• Air-conditioning machines with fans and temperature/humidity control.
• Dishwashing machines.

Meanwhile, the Gujarat Cooperative Milk Marketing Federation (Amul's parent organization) has reported new cost reductions on its items, effective today (September 22). They have declared lower prices on over 700 products. The organization's decision aims to pass on the benefits of the GST rate cut to customers. As a result, items such as ghee, butter, ice cream, bakery goods & frozen snacks will now be more affordable.

Related Blogs:

1. What is Tax Planning: Objectives, Types & Importance

2. Tax Rebate & Marginal Relief u/s 87A: Smart Tax Planning

3. Mutual Fund Entry vs Exit Load: What Matters Most In 2025?