New GST Rates List Live Updates: A historic reform in India’s indirect tax system has come into force from September 22, 2025. The revamped Goods and Services Tax (GST 2.0) has lowered rates on essential commodities to encourage consumption while rationalising taxes across sectors. The initiative, launched as “GST Bachat Utsav” (savings festival), coincides with the first day of Navratri, making groceries, electronics, and many other items cheaper starting today.
🔑 GST 2.0 at a Glance
- 5% slab – Essential goods
- 18% slab – Most other goods and services
- 40% slab – Luxury & sin goods (tobacco, alcohol, betting, gaming)
- Estimated Savings: Rs. 2.5 lakh crore for citizens (including earlier tax cuts)
The 56th GST Council Meeting, chaired by Finance Minister Nirmala Sitharaman, simplified the structure by merging four slabs into just two main categories, along with a separate sin tax bracket. This rationalisation is expected to ease compliance and reduce costs for items previously taxed at 12% or 28%.
Prime Minister Narendra Modi, in his address to the nation on Sunday, said the combined benefit of GST cuts and earlier income tax relief would lead to major savings for the people. He congratulated citizens on the start of GST Bachat Utsav, saying, “This festival of savings will make everyday purchases easier for families across India.”
The PM further highlighted that GST reforms have been a priority since 2014. Before GST, businesses faced hurdles such as complex paperwork, multiple check posts, and varied state taxes. GST 2.0, he noted, removes such barriers, reducing costs and creating a smoother tax ecosystem for trade and consumers alike.
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