New GST Rule 2025: Only Two Tax Slabs Now, Cheaper Goods from September 22
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India has introduced a major change in the Goods and Services Tax (GST) system. Under the One Nation, One Tax rule implemented in 2017, there were multiple tax slabs. However, the government has now announced significant reforms that will directly benefit consumers.
From now on, there will be only two GST slabs – 5% and 18%. The earlier 40% slab has been completely removed. This new rule will come into effect on September 22, 2025, coinciding with the first day of Navratri.
When will the new GST rule come into effect?
The new GST rule will be effective from September 22, 2025. The government has clarified that relief will be provided to citizens right before the festive season begins.
Which items will get cheaper?
From September 22 onwards, food items and everyday essentials will become more affordable.
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Dairy products: Milk, paneer, curd
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Grocery items: Biscuits, soaps, shampoos
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Electronics: ACs, TVs, mobile phones, radios
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Vehicles & other goods: Motors, cars, online shopping products
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Hotels & service sector: GST in hotels has been reduced from 12% to 5%.
How will consumers benefit?
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Direct relief: Lower tax will reduce the prices of goods.
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Festive discounts: Extra savings during Navratri and Diwali.
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Online & offline impact: Prices will drop across e-commerce websites as well as local markets.
Responsibility of companies & government’s strict monitoring
It is the responsibility of companies to reduce prices after the GST cut. The government has made it clear that if companies delay price reductions, strict action will follow.
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The Ministry of Finance will conduct regular inspections.
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Old and new price lists will be compared.
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MPs and MLAs will personally monitor their constituencies.
What should consumers do?
Consumers also need to remain alert and aware.
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Always check the manufacturing date on products.
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Items manufactured after September 22 should be cheaper.
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Verify the bill and applicable GST rate.
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Ask shopkeepers if GST reduction has been passed on to you.
Why is it important for GST relief to reach the public?
Around 61% of India’s GDP comes from household consumption. That’s why the government wants the reduction in GST to directly benefit the common people. If companies or traders fail to pass on this benefit, it would be a betrayal of consumers.
