GST 2.0 Roll Out From 22 September: Essentials, Cars, And Appliances Get Cheaper; Sin Goods Costlier

The government will roll out GST 2.0 reforms on 22 September, marking a historic change in India’s indirect tax system, reported News 18.

Finance Minister Nirmala Sitharaman and the GST Council announced the overhaul earlier this month, consolidating four slabs into two — 5 per cent for essentials and 18 per cent for most goods and services — along with a 40 per cent sin tax on products like tobacco, alcohol, betting, and online gaming.

Consumers will benefit from lower costs on several items.

Many household goods currently taxed at 12 per cent will shift to the 5 per cent slab.

These include toothpaste, soaps, shampoos, packaged foods, dairy items, bicycles, stationery, apparel, and footwear below a price limit.

For middle-class families, these cuts promise noticeable monthly savings.

Big-ticket items will also get cheaper. Products such as air conditioners, refrigerators, dishwashers, large-screen TVs, and cement are moving from 28 per cent to 18 per cent.

Insurance premiums, currently at 18 per cent, may also move to a lower slab or get exemptions, reducing household costs.

However, the government has kept tobacco, alcohol, pan masala, online gaming, diamonds, and precious stones in higher tax categories.

Petroleum products remain outside GST, so fuel prices stay unchanged.

Economists predict GST 2.0 could lift GDP growth by 0.7–0.8 per cent by boosting demand and easing compliance. Markets have already responded positively, with auto and FMCG stocks leading gains.

For consumers, the reform means cheaper daily essentials, affordable appliances and vehicles, and lower insurance costs. For businesses, especially SMEs, it ensures simpler compliance and smoother operations.

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