{"id":14691,"date":"2025-09-22T10:50:38","date_gmt":"2025-09-22T05:20:38","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=14691"},"modified":"2025-09-22T10:50:38","modified_gmt":"2025-09-22T05:20:38","slug":"new-gst-rates-2-0-roll-out-from-today-what-gets-cheaper-and-what-gets-costlier","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/new-gst-rates-2-0-roll-out-from-today-what-gets-cheaper-and-what-gets-costlier\/","title":{"rendered":"New GST Rates 2.0 Roll Out from Today: What Gets Cheaper and What Gets Costlier"},"content":{"rendered":"

New Delhi, September 22, 2025 \u2013 The Modi government\u2019s next-generation Goods and Services Tax (GST) reforms, popularly referred to as GST 2.0, officially came into effect today, coinciding with the beginning of the Navratri festival. The new structure brings major changes for households, the automobile industry, FMCG players, e-commerce platforms, and banking schedules in select regions.<\/p>\n

GST 2.0 Brings Relief for Consumers<\/h2>\n

The updated GST system consolidates tax slabs into just two main categories, 5% and 18%. This simplified structure aims to make the taxation system more citizen-friendly while easing the burden on consumers. Essential household goods, food items, two-wheelers, cars, and electronic appliances such as televisions are now available at lower prices.<\/p>\n

Several popular food items, including roti, paratha, paneer, and khakhr, have been moved to the 0% GST category. In contrast, many daily-use items, such as soaps, shampoos, toothpaste, diapers, and packaged food products, have become cheaper as FMCG companies announced immediate price cuts to pass on the benefits to customers.<\/p>\n

Also Read: GST 2.0 Live 2025: India\u2019s Next Big Tax Reform Explained<\/a><\/em><\/p>\n

Impact on Automobiles<\/h3>\n

The automobile sector is witnessing one of the biggest shifts under GST 2.0. Small petrol-hybrid cars have seen their GST rate fall from 28% to 18%, boosting affordability and supporting green mobility. Manufacturers such as Tata Motors and Maruti Suzuki are expected to gain from this rationalisation.<\/p>\n

Meanwhile, luxury electric vehicles priced above $46,000 will now attract up to 40% GST, impacting brands like Tesla and Mercedes-Benz. At the same time, the sub-\u20b910 lakh SUV market is set to heat up further as models such as Tata Punch, Maruti Brezza, Hyundai Venue, Kia Sonet, Mahindra XUV 3XO, and Skoda Kylaq now become relatively more affordable compared to hatchbacks.<\/p>\n

Higher GST on Premium Goods<\/h3>\n

While many items have moved to lower slabs, premium categories are facing steeper taxes. Clothing priced above \u20b92,500 per piece will now be taxed at 18% instead of 12%. Similarly, aerated drinks with added sugar, high-end motorcycles with engines above 350cc, and private aircraft will attract 40% GST.<\/p>\n

Banking Holiday Updates<\/h3>\n

While GST reforms dominate headlines, banking schedules in certain regions have also been affected today. Banks in Jaipur, Rajasthan, are closed on September 22 for Navratra Sthapna. This closure applies to all public and private sector banks. Tomorrow, September 23, banks in Jammu and Srinagar will also remain shut. In addition, the regular fourth Saturday and Sunday holiday falls on September 27 and 28.<\/p>\n

E-Commerce Platforms Begin Festival Sales<\/h2>\n

India\u2019s largest online retailers Amazon and Flipkart, have launched their flagship sales, The Great Indian Festival and Big Billion Days, respectively. These coincide with GST 2.0 implementation and are expected to generate record demand, with festive season sales typically contributing up to one-fourth of annual revenues for these platforms.<\/p>\n

Political Reactions and State Initiatives<\/h2>\n

Prime Minister Narendra Modi described the launch of GST 2.0 as a \u201cGST Savings Festival\u201d<\/strong>, highlighting that the reforms will bring relief to every section of society, from farmers to shopkeepers. He also tied the move to the \u201cSwadeshi\u201d spirit, calling for collective efforts toward a self-reliant India.<\/p>\n

Delhi Chief Minister Rekha Gupta praised the reforms, calling them an early Diwali gift for traders and a crucial step in easing inflation. Rajasthan Chief Minister Bhajanlal Sharma announced a week-long \u201cGST Savings Festival\u201d<\/strong> in the state, beginning today and running until September 29, to spread awareness about the benefits of the new tax structure.<\/p>\n

Sectoral Impact<\/h2>\n

Stock Market Reaction<\/strong> \u2013 The equity markets erased their morning losses today, with Nifty climbing above 25,300<\/strong>. While IT stocks dragged indices lower, power sector shares saw notable gains as investors reacted to the GST rollout.<\/p>\n

FMCG Companies<\/strong> \u2013 Leading fast-moving consumer goods players have slashed prices across product lines. Revised MRPs have been issued for daily essentials like soaps, razors, diapers, tea, coffee, chocolates, namkeen, and sweets. The move comes after months of weak demand and is expected to spur festive-season consumption.<\/p>\n

Imports<\/strong> \u2013 The new GST rates will also apply to imported goods through Integrated GST (IGST), except where exemptions exist.<\/p>\n

Passenger Transport<\/strong> \u2013 Road transport will continue to attract 5% GST without input tax credit<\/strong>, though operators can opt for 18% with ITC. Air travel remains taxed at 5% for economy class and 18% for business class.<\/p>\n

Insurance<\/strong> \u2013 All life insurance policies<\/strong>, including term, endowment, and ULIPs, are now exempt from GST<\/strong>, along with reinsurance of these policies.<\/p>\n

Key Categories Under GST 2.0<\/h2>\n