From ACs to Cars: Complete List of Items Cheaper Under New GST Rates

India’s revised GST rates took effect on Monday, with Prime Minister Narendra Modi saying that the move, along with earlier income tax cuts, will help citizens save nearly ₹2.5 lakh crore.

Describing the reforms as a “savings festival,” Modi said the income tax cuts primarily benefited the middle class, while the GST reductions extend relief to the poor and the emerging middle class. “With these reforms, people will be able to save more and spend on what they wish. From youth, farmers and women to shopkeepers, traders and entrepreneurs—everyone will gain from this Bachat Utsav. This festive season, every family will have something to celebrate,” he said in a Sunday evening address.

Key Items and Savings Under New GST Rates

Home Appliances and Electronics

• Air Conditioners: Split ACs see reductions of ₹2,800–5,900; window units down ~₹3,400; commercial systems also cheaper.

• Dishwashers: Up to ₹8,000 off; entry-level models drop ~₹4,000.

• Large TVs: Reductions vary by size: 43-inch ₹2,500–5,000, 55–65-inch ₹3,400–20,000, premium 100-inch models up to ₹85,800.

Daily Essentials and Personal Care

• Bathroom essentials: Hair oil, soaps, shampoos, toothbrushes, and toothpaste now taxed at 5%.

• Grooming products: Talcum powder, face powder, shaving cream, and after-shave lotion drop from 18% to 5%.

• Baby products: Diapers and feeding essentials become cheaper.

Food and Kitchen Staples

• Dairy products: Ghee down ₹40–70/litre, butter ₹4/100g, paneer ₹4/200g.

• Packaged foods: Namkeen, instant noodles, chocolates, jams, ketchup, and sauces all move to 5%.

• Beverages: Fruit juices down ₹5–10, coffee ₹30–95, bottled water ₹2; aerated drinks remain at higher tax.

• Completely tax-free: Ultra-high temperature milk, prepackaged paneer, and Indian breads including chapati, roti, and paratha.

Health Care and Wellness

• Medicines: 33 lifesaving drugs and select cancer/rare-disease medications now tax-free; other medicines drop from 12% to 5%.

• Medical equipment: Glucometers, diagnostic kits, surgical equipment, and devices become more affordable.

• Wellness services: Gym memberships, salons, barber visits, yoga classes, and spa treatments move from 18% to 5%.

Automobiles and Transport

• Small vehicles: Motorcycles and scooters up to 350cc drop from 28% to 18%.

• Entry-level cars: Hatchbacks drop ₹40,000–75,000; mid-range sedans ₹57,000–80,000; compact SUVs ₹68,000–85,000.

• Mid-range vehicles: Family cars and SUVs see ₹60,000–1.56 lakh reductions.

• Premium vehicles: Luxury SUVs down ₹1.8–4.48 lakh; ultra-premium models up to ₹30 lakh.

• Two-wheelers: Commuter scooters down ₹7,000–8,200; performance motorcycles ₹13,000–18,800.

• Commercial vehicles and auto parts: Buses, trucks, and components see uniform 18% rate.

Construction and Agriculture

• Building materials: Cement drops from 28% to 18%.

• Farming equipment: Tractors, harvesters, and soil-preparation tools become cheaper.

• Fertiliser components: Raw materials see rate cuts, reducing input costs.

Hospitality Services

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

Student Use Items

• Completely tax-free: Exercise books, erasers, pencils, crayons, and sharpeners.

• Reduced rate (12% → 5%): Geometry boxes, school cartons, and trays.

Insurance Relief

• Full exemption: Life insurance (term, ULIP, endowment) and health insurance (family floaters and senior plans) now completely tax-free.

The GST overhaul, the biggest since the tax’s introduction in 2017, simplifies rates into primarily two slabs while extending benefits across households, businesses, and key sectors in time for the festive season.