New GST slabs: Hair oil, ice creams, TVs to cost less…, What’s cheaper, costlier? See full list

On Wednesday, The GST Council approved limiting slabs to 5 per cent and 18 per cent, effective from September 22, the first day of Navaratri.

Written by: Nivedita Dash Edited by: Nivedita Dash

Updated: September 4, 2025, 11:38 AM IST

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New GST slabs: Hair oil, ice creams, TVs to cost less..., What's cheaper, costlier? See full list

New GST slabs: Bringing a cheer to common man’s face, the government approved a complete overhaul of the tangled Goods and Services Tax (GST) regime. The GST Council approved limiting slabs to 5 per cent and 18 per cent, effective from September 22, the first day of Navaratri.

Briefing reporters after a marathon day-long GST Council meeting, Union Finance Minister Nirmala Sitharaman said all decisions were taken unanimously, with no disagreement with any state.

The panel approved simplifying the GST from the current four slabs – 5, 12, 18 and 28 per cent, to a two-rate structure – 5 and 18 per cent.

Common use food items and beverages, ranging from butter and ghee to dry nuts, condensed milk, sausages and meat, sugar boiled confectionery, jam and fruit jellies, tender coconut water, namkeen, drinking water packed in 20-litre bottles, fruit pulp or fruit juice, beverages containing milk, ice cream, pastry and biscuits, corn flakes and cereals, and sugar confectionery

What becomes cheaper?

• Plant-based milk drinks, soya milk drinks
• Tooth powder, feeding bottles, tableware, kitchenware, umbrellas, utensils, bicycles, bamboo furniture and combs
• Shampoo, talcum powder, toothpaste, toothbrushes, face powder, soap and hair oil
• Air-conditioners, dishwashers, and TVs
• Stationary items
• Maps, charts, globes, pencils, sharpeners, crayons and pastels, exercise books and notebooks, erasers
• Footwear, textiles
• Life-saving drugs, health-related products
• Individual life and health insurance policies
• Hotel tariffs and flights
• Economy class tickets
• Vehicles, auto components
• Motorcycles up to 350 cc
• Small hybrid cars will also benefit, while Electronic vehicles will continue to be charged at 5 per cent GST.
• GST on auto components has been reduced to 18 per cent from the current 28 per cent slab.
  Fuel usage
• Petrol, LPG and CNG vehicles of less than 1,200 cc
• Cement
• Sewing machines and parts
• GST rate has been slashed from 12 per cent to five per cent
• Sulphuric acid, nitric acid and ammonia
• Tyres and tubes, agricultural diesel engines of cylinder
• Health clubs, salons, barbers, fitness centers, yoga

What Gets Costlier?

• Coca-Cola and Pepsi
• Caffeinated beverages
• Non-alcoholic beverages
• Automobiles
• Tobacco and tobacco-related products