Here’s a breakdown of what gets cheaper for urban households under GST 2.0, effective from September 22, 2025.
🔍 Key Changes in GST 2.0
- The old GST slab structure (5%, 12%, 18%, 28%) is replaced by primarily 5% and 18% slabs, plus a 40% slab for luxury/sin goods.
- A number of everyday goods & services move into the 5% slab (or even zero GST), reducing tax burden on households.
🧾 What’s Getting Cheaper for Urban Households
| Category | Change | Example / Impact |
|---|---|---|
| Personal Care & Beauty / Fitness Services | Salons, spas, gyms, yoga studios etc. will now attract 5% GST instead of 18%. | A ₹2,000 salon bill will now have ₹100 tax instead of ~₹360. |
| Daily Essentials / Household Goods | Soaps, shampoos, shaving cream, toothpaste, toothbrush, face powders etc. move from higher slabs to 5%. | |
| Prescription Spectacles | GST cut from possibly 12-18% to 5% for corrective spectacles. | |
| Bicycles & Parts | Moved from 12% to 5%. Cheaper for commuting, exercise, etc. | |
| Food & Packaged Foods / FMCG Items | Many packaged/labelled staples are cheaper: butter, ghee, dry fruits, cheese, meats, jams, ketchup, biscuits, breakfast cereals, ice cream, fruit juices, soya/plant-based milks etc. | |
| Healthcare & Insurance | Life & health insurance premiums are now GST-free (zero tax). Also cheaper medicines, medical devices. |
