📌 GST Rate Reset: Old vs New — What It Means for You

Every Indian consumer and business will feel the pulse of GST 2.0, as the latest Council decisions overhaul rates across essentials, lifestyle goods, and luxury items. Here’s the big picture 👇

🍞 Food & Essentials

• UHT Milk, Paneer, Pizza bread, Khakhra → From 5%/18% ➝ Nil

• Parathas & Indian breads → 18% ➝ Nil

• Butter, Ghee, Cheese, Nuts, Dry Fruits → 12% ➝ 5%
  ✅ Result: Kitchen staples and healthy foods become lighter on the wallet.

🚜 Agriculture & Fertilizers

• Diesel engines, Pumps, Sprinklers, Tractors → 12% ➝ 5%

• Fertilizers, Micronutrients → 18% ➝ 5%
  🌱 Result: Lower input costs for farmers = reduced inflation in food supply.

💊 Health & Education

• Life-saving drugs & equipment → 12%/5% ➝ Nil

• Oxygen, diagnostic kits, medical devices → 12% ➝ 5%
  📚 Erasers, Maps, Notebooks → 5%/12% ➝ Nil
  ❤️ Result: Healthcare & learning made more affordable.

🛍️ Everyday Household Items

• Soaps, Shampoos, Hair Oil, Toothpaste → 18% ➝ 5%

• Candles, Safety Matches, Feeding Bottles, Bicycles → 12% ➝ 5%
  🏡 Result: Daily-use products cheaper for the common man.

📺 Electronics & Mobility

• TVs, ACs, Dishwashers → 28% ➝ 18%

• Motorcycles ≤350cc, Cars ≤1500cc → 28% ➝ 18%
  🚗 Luxury Cars, Motorcycles >350cc, Yachts, Aircraft → 28% ➝ 40%
  ⚡ Result: Push for middle-class affordability, while taxing luxury consumption higher.

🪔 Handicrafts & Culture

• Idols, Stone/Metal crafts, Toys, Sports goods → 12% ➝ 5%
  🎨 Result: Boost to artisans and Make-in-India handicraft economy.

🔥 Coal & Energy

• Coal, Lignite, Peat → 5% ➝ 18%

• Renewable devices like solar, wind, biogas → 12% ➝ 5%
  🌍 Result: Clean energy incentivised, dirty fuels penalised.

GST 2.0 isn’t just a tax reform. It’s a rebalancing act:
👉 Relief for the common man on food, health, and daily goods.
👉 Support for farmers, students, and local artisans.
👉 Luxury, polluting, and non-essential goods taxed higher.

This isn’t just about numbers—it’s about nudging India toward affordability, inclusivity, and sustainability.

#GST #IndiaEconomy #ConsumerImpact #TaxReforms #DigitalIndia