The New GST Rate has reshaped shopping lists in India—milk and biscuits got cheaper, but TV sets and SUVs are costlier. Here’s the full scoop!
Picture this: you walk into a store to buy paneer, shampoo, and a pair of shoes. At the counter, the bill shocks you—not because of inflation this time, but because the New GST Rate just pulled a plot twist. Some items are suddenly kinder to your wallet, while others behave like luxury villains straight out of a Bollywood masala film.
Yes, India’s tax system has gone through another wardrobe change. And like all wardrobe changes, some outfits look better, some worse, and some just plain confusing.
The GST Council’s new drama proves that in India, even your toothpaste and toy car have a tax story to tell.
Why this New GST Rate matters
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, recently approved a big shake-up: the 12% and 28% slabs are gone. Now, everyday items—think milk, biscuits, shampoos—slide into lower slabs like they just got a festive discount. On the flip side, luxury goods and SUVs are paying a heavier price for their extravagance.
For context, GST is like India’s version of a traffic police officer for money—it tells your purchases where to stop, where to move, and where to pay extra fines. According to official GST guidelines, the new structure aims to simplify life for common citizens and businesses alike.
What just got cheaper?
Grab your shopping list. Here’s where you’ll save:
- Milk products: UHT milk is now tax-free. Condensed milk, butter, paneer, and cheese dropped from 12–18% to 5%. Paneer lovers, rejoice!
- Namkeen and snacks: GST on bhujia, chabena, and namkeens slid to 5% from 18%. Translation: binge-watching just got cheaper.
- Dry fruits: Almonds, pistachios, cashews, and dates—now 5% instead of 12%. A relief for your Diwali hampers.
- Staple foods: Pasta, biscuits, cornflakes, chocolates—slashed to 5% from 12–18%. Basically, your kids just got a tax break.
- Fertilisers and agricultural inputs: Reduced to 5%. Farmers may finally breathe a little easier.
- Healthcare: Life-saving drugs and health-related products now 5% or nil. That’s a serious win.
- Daily-use items: Hair oil, shampoo, dental floss, toothpaste—down to 5% from 18%. Your morning routine just got cheaper.
- Footwear & textiles: 5% now. Shopping therapy is back in business.
- Sports & toys: Reduced to 5%. Parents, brace yourselves for “Mumma, ek aur toy chahiye!”
Even cars with smaller engines (CNG, hybrid, LPG under 1200cc) now attract 18% instead of 28%. So, yes, compact cars are now a little more pocket-friendly.
What just got costlier?
Before you pop the champagne, here’s the bitter part:
- Sugary goods: Products with added sugar and sweeteners now attract a whopping 40% GST, up from 28%. Gulab jamun lovers, beware.
- Luxury goods: Straight to the 40% slab. Want that imported handbag? Think again.
- Coal: From 5% to 18%. Sorry power producers, your bill’s heavier now.
- TV sets: Now at 18%. Binge-watching Netflix will come with a side of tax guilt.
- Big cars & bikes: Above 350cc? Welcome to the 40% club. Basically, superbikes and SUVs just became more “super-expensive.”
Why the changes?
The government’s aim is to simplify GST slabs while ensuring fairness. Everyday essentials are cheaper to ease the load on the common man. Luxury items and “sin goods” (like cigarettes and pan masala) remain or rise steeply to discourage overuse.
Finance Minister Nirmala Sitharaman explained that labour-intensive industries and farmers will benefit the most. Agriculture, healthcare, and education now see reduced GST rates—these are seen as growth drivers for the economy.
Think of it as India’s attempt at balancing the seesaw: the aam aadmi goes up, luxury buyers pay down.
A witty reality check
Let’s be real. The New GST Rate may look like a fairy godmother waving a tax wand. But not everyone’s invited to the party. If you’re a college student surviving on Maggi and biscuits—congrats, you win. But if you had dreams of upgrading to a shiny SUV or a luxury TV—oops, better luck next fiscal year.
And don’t forget, as history shows, sometimes these tax reductions don’t fully reach the consumer. Will the shopkeeper pass on the savings, or will he just smile and say, “Madam, GST badal gaya, par price wahi hai”? Time will tell.
The bigger picture
India’s tax reforms are rarely just about money—they’re about politics, perception, and people. Simplifying GST slabs is expected to:
- Reduce confusion for businesses.
- Boost compliance.
- Lower disputes between states and the centre.
- Encourage spending on essentials.
Economists believe that such rationalisation could also increase tax revenues in the long run by making compliance smoother. According to Economic Survey reports, simplifying GST has been a long-pending recommendation.
What it means for you
- Middle-class households: Monthly grocery bills may finally shrink a little.
- Farmers: Lower GST on fertilisers means reduced costs.
- Students & families: Affordable education services and lower taxes on daily items.
- Luxury buyers: Sorry, but your splurges just got taxed like a sin.
A smile-worthy example
Imagine this: You go to the supermarket with ₹1,000. Under the old GST, you bought shampoo, cheese, and biscuits, and came home broke. Under the New GST Rate, you get all three—and maybe still have enough left for that extra pack of namkeen.
But if you also wanted to surprise your kids with a 55-inch TV—well, that’ll cost you extra now. GST giveth, GST taketh away.
In short: the New GST Rate just turned shopping into a game of snakes and ladders. Essentials slide down the tax snake, luxuries climb the tax ladder.
So, what do you think about the New GST Rate? Did it make your grocery list lighter or your dream SUV heavier? Share your thoughts in the comments, send this to your WhatsApp groups (we know you will!), and don’t forget to check out our other witty explainers on money and policy.
Suggested Related Post
👉 “GST Gets a Haircut: From Paneer to Parotta, Prices Dip”
