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India Rolls Out GST 2.0 With Two Slabs as Price Cuts Hit Shelves Today

The prime minister casts the overhaul as a “GST Bachat Utsav” that will deliver ₹2.5 lakh crore in combined tax relief.

Overview

  • The new regime consolidates rates to 5% and 18% with a 40% band for sin and ultra‑luxury goods, taking effect nationwide on 22 September, the first day of Navratri.
  • Lower GST now applies to roughly 375 goods and services, with most items from the 12% slab moving to 5% and many from 28% reclassified to 18%.
  • Appliance makers have cut prices immediately—air conditioners by up to ₹4,500 and dishwashers by up to ₹8,000—while Amul reduced MRPs across 700‑plus packs from today.
  • The Railway Board trimmed Rail Neer prices to ₹14 for 1 litre and ₹9 for 500 ml, effective with the rollout.
  • Sectoral shifts include two‑wheelers up to 350cc, small cars and auto parts to 18%, tractors under 1800cc to 5%, and cement to 18%, with several basic building materials moved to 5%.