New GST Rates: The Complete List of Cheaper and Costlier Items (Sep 2025)

Following the landmark decision by the GST Council, India is set to embrace a new, simpler tax structure from September 22, 2025. As we covered in our main announcement guide, the old multi-slab system is being replaced by two standard rates: 8% and 15%.

This historic overhaul will change the price of hundreds of goods and services. For households and businesses alike, the most pressing question is: “What exactly is getting cheaper, and what’s getting costlier?”

This article provides a comprehensive, categorized list of the items affected by the new GST rates. You can also use our **updated GST Calculator** to instantly compute the new prices for any amount.

What Gets Cheaper? Items with Reduced GST

The primary goal of this GST revamp is to reduce the tax burden on mass-consumption items and boost demand in key sectors. Here’s a detailed breakdown of items that will become more affordable.

Food and Groceries (Moving from 12% to 8%)

Many daily-use food items will see a significant price drop as they move from the 12% slab to the new 8% standard rate.

• Butter, Ghee, and Cheese
• Packaged Dry Fruits
• Fruit Juices
• Pickles, Murabba, and Chutneys
• Ketchup and Sauces
• Instant Food Mixes

Home and Kitchen Appliances (Moving from 18% to 15%)

Consumer durables, a major expense for most households, will become cheaper, which is expected to boost sales.

• Refrigerators and Washing Machines
• Dishwashers
• TVs (up to 32 inches)
• Mixers, Grinders, and Food Processors
• Water Heaters and Geysers
• Water Purifiers
• Vacuum Cleaners

Electronics and Gadgets

Some electronics will see a price drop, making them more accessible.

• Computer Monitors (up to 27 inches) – From 18% to 15%
• Printers and Scanners – From 18% to 15%
• CCTV Cameras – From 18% to 15%

Automobiles (Select Categories)

The automobile sector gets a boost with rate cuts on smaller vehicles.

• Two-wheelers (Motorcycles, Scooters) – From 28% to a lower rate (final rate to be confirmed, but expected to be significantly less)
• Small Cars (under 4 meters) – From 28% to a lower rate

Other Household Items (Moving from 18% to 15%)

• Furniture (Wooden and Plastic)
• Mattresses and Bedding
• LED Lights and Bulbs
• Sanitaryware and Fittings
• Paints and Varnishes
• Soap, Toothpaste, and Hair Oil

What Gets Costlier? Items with Increased GST

To maintain a revenue-neutral position, the GST Council has increased the tax rate on certain goods and services, primarily in the non-essential and services categories.

Services (Moving from 12% to 15%)

Many services will now fall under the higher standard rate of 15%, making them more expensive.

• Financial services and banking charges
• Business-class air travel
• Work contract services (e.g., construction)
• Restaurant services in hotels with room tariffs above the specified limit
• IT and professional consultancy services

Electronics and Gadgets (Moving from 12%/18% to 15%/higher)

• Mobile Phones – From 12% to 15%
• Laptops and Tablets – From 18% to a potentially higher slab
• Power Banks – From 18% to a potentially higher slab

Other Items

• Chocolates and Confectionery – From 18% to a potentially higher slab
• Certain luxury goods previously at 18% may move to the 28% slab.

Items with No Change in GST Rate

It’s also important to note what isn’t changing. The government has kept some slabs untouched.

• 0% Slab (Exempt): Unpackaged food grains, fresh vegetables, milk, curd, healthcare, and education services remain exempt from GST.
• 5% Slab: Essential items like sugar, tea, basic packaged food, and economy-class air travel will continue to be taxed at 5%.
• 28% Slab: Luxury items like large cars, ACs, and sin goods like tobacco and pan masala will remain in the highest tax bracket.

The Final Word: Plan Your Purchases

This GST rate overhaul is a significant event for the Indian economy. For consumers, it presents an opportunity to save money on big-ticket purchases like appliances and vehicles if you can time them right. For businesses, it’s a critical time to update systems and pricing strategies.

By staying informed with this list and using reliable tools like our updated GST Calculator, you can navigate this transition smoothly and make financially smart decisions.