“From September 22: GST 2.0 Brings Price Cuts on Essentials, Hikes on Luxuries”

GST 2.0 From September 22: What Gets Cheaper, What Turns Costlier.

As the revamped GST 2.0 structure rolls out from September 22, shoppers across India will notice clear shifts in prices of daily-use items, appliances, vehicles, and luxury goods.

The government has aimed this reset at making essentials more affordable, while increasing taxes on luxury and “sin” products. Here’s a breakdown of how it affects households, students, and consumers.

Relief on Daily Essentials

• Households will feel the difference straight at the kitchen table.
• Amul has cut prices on more than 400 products—including butter, paneer, chocolates, bakery snacks, and frozen foods.
• Sanchi ghee (Madhya Pradesh) is cheaper by nearly ₹40, while Nandini (Karnataka) has reduced rates on ghee, butter, processed cheese, and milk products.
• Everyday staples like atta, edible oils, soaps, and even Rail Neer bottled water will now cost less.

Electronics & Appliances: Big Savings

• Families eyeing festive purchases get a bonus.
• Air-conditioners and dishwashers are cheaper by ₹4,500–₹8,000.
• Televisions, computer monitors, and projectors now attract just 18% GST.
• Refrigerators and smartphones priced below ₹25,000 are down too—making gadgets more accessible.

Automobiles: Massive Price Cuts

Perhaps the most headline-worthy change is in cars and two-wheelers.

Maruti Suzuki has slashed prices across popular models like Alto, Swift, Brezza, and Baleno, with benefits up to ₹1.2 lakh.

Suzuki bikes and scooters up to 350cc are cheaper by several thousand rupees—great news for mid-range buyers.

Inputs for housing and construction—like marble, granite, and lime bricks—also move into lower tax slabs, reducing project costs.

School & Healthcare Essentials Now Tax-Free

Families save further as exercise books, pencils, erasers, notebooks, and even health and life insurance premiums are moved into the 0% GST bracket.

This means both education-related items and essential coverage get completely tax-exempt status.

What Gets Costlier Under GST 2.0

• Not everything is good news. The higher 40% GST bracket now applies to:
• Cigarettes, gutkha, pan masala, and chewing tobacco
• Sugary soft drinks and aerated beverages
• Big bikes above 350cc (e.g., Royal Enfield Himalayan, 650cc series)
• Luxury cars, imported SUVs, premium liquor, and high-end watches

Double-Check Those MRPs

One practical point: products manufactured before September 22 may carry two MRPs—old and revised. For example, a biscuit packet earlier marked ₹50 might now list ₹48.

Since companies are no longer required to advertise new MRPs in newspapers, they’ll update via stickers, stamps, or digital printing. Old packaging can stay on shelves until March 31, 2026.