A guide to how GST 2.0 changes your spends

Indians will save ₹2.5 lakh crore on account of the GST rate changes effective from Monday, PM Modi said

Home appliances and electronics

Air conditioners: Expect savings of ₹2,800 to ₹5,900 on split ACs, with window units seeing reductions of around ₹3,400. Commercial air conditioning systems for offices and large buildings also get cheaper.

New Delhi, Sep 21 (ANI): Prime Minister Narendra Modi greets before addressing the nation, in New Delhi on Sunday. (DD/ANI Video Grab) (DD)

Dishwashers: Price cuts of up to ₹8,000, with entry-level models dropping by approximately ₹4,000. This niche segment could see expanded adoption as costs become more accessible.

Large televisions: Models above 32 inches to see reductions ranging from ₹2,500 to ₹85,000 depending on the screen size. Entry-level 43-inch models drop by ₹2,500-5,000, mid-range 55-65 inch TVs see cuts of ₹3,400-20,000, while premium TVs with displays of 100 inches would see massive reductions of ₹85,800.

Daily essentials and personal care

Bathroom essentials: Hair oil, toilet soaps, shampoos, toothbrushes and toothpaste all move to the 5% tax bracket, making daily hygiene more affordable.

Grooming products: Talcum powder, face powder, shaving cream and after-shave lotions see significant reductions as taxes drop from 18% to 5%.

Baby products: Diapers and feeding essentials become cheaper, providing relief to young families.

Food and Kitchen Staples

Dairy products:Ghee sees price cuts between ₹40-70 per litre (bringing 1-litre packs down to ₹610-750), while butter price drops by ₹4 per 100g pack to ₹58. Paneer also becomes ₹4 cheaper per 200g pack at ₹95.

Packaged foods: Namkeen and bhujia, instant noodles ( ₹4 reduction to ₹116), chocolates (premium spreads down ₹50, luxury boxes down ₹100), jams, ketchup and sauces all get cheaper as they move to the 5% bracket.

Beverages: Fruit juices see ₹5-10 reductions (apple juice down to ₹105, mango drinks to ₹65), coffee blends drop ₹30-95 per pack, and bottled water becomes ₹2 cheaper, though aerated drinks remain in the higher tax category.

Completely tax-free: Ultra-high temperature milk, prepackaged paneer and all Indian breads including chapati, roti and parantha become completely exempt from GST.

Health care and Wellness

Medicines: Thirty-three lifesaving drugs become completely tax-free, whilst three cancer and rare disease medications also lose their tax burden. All other medicines move from 12% to 5%.

Medical equipment: Glucometers, diagnostic kits, surgical equipment and medical devices become more affordable for patients and health care providers.

Wellness services: Gym memberships, salon services, barber visits, yoga classes and spa treatments drop from 18% to 5%, though businesses lose input tax credit benefits.

Automobiles and Transport

Small vehicles: Vehicles and motorcycles with engines up to 350cc see tax reductions from 28% to 18%, making entry-level mobility more accessible.

Entry-level cars: Mass-market hatchbacks see substantial cuts: popular budget models drop ₹40,000-75,000, mid-range sedans see ₹57,000-80,000 reductions, and compact SUVs become ₹68,000-85,000 cheaper.

Mid-range vehicles: Family cars and SUVs see bigger savings — mainstream SUVs drop between ₹1.01-1.56 lakh, popular sedans become ₹60,000-98,000 cheaper, and crossover models see ₹72,000-1.23 lakh cuts.

Premium vehicles: Luxury SUVs witness dramatic reductions ranging from ₹1.8 lakh to ₹4.48 lakh, while ultra-premium models see cuts exceeding ₹30 lakh in some cases.

Two-wheelers: Scooters and motorcycles under 350cc (covering 98% of India’s two-wheeler market) become ₹5,600-18,800 cheaper. Popular commuter scooters see ₹7,000-8,200 cuts while performance motorcycles drop ₹13,000-18,800.

Commercial vehicles: Buses, trucks and ambulances become cheaper, potentially reducing transportation costs across the economy.

Auto parts: All automobile components now attract a uniform 18% rate regardless of classification, simplifying the supply chain.

Construction and Agriculture

Building materials:Cement prices drop as GST falls from 28% to 18%, providing relief to home builders and infra projects.

Farming equipment: Tractors, harvesters, soil preparation machinery and other agricultural tools become more affordable.

Fertiliser components: Raw materials for fertiliser production see rate cuts, potentially reducing farming input costs.

hospitality SERVICES

Hotel rooms: Those priced at ₹7,500 or below per night see taxes drop from 12% to 5%.

Student use items

Completely tax-free: Exercise books, erasers, pencils, crayons and sharpeners move to tax-free slab. Geometry boxes, school cartons, and trays move from the 12% bracket to 5%.

Insurance relief

Complete exemption: Both life insurance policies (term, ULIP, endowment) and health insurance (including family floaters and senior citizen plans) become completely tax-free, delivering substantial savings to policyholders.