GST 2.0 – What has changed in GST ?..

In July 2017 GST was implemented. Now GST 2.0 brings some changes to GST system in September 2025. Considering the current economic situation, the government has changed the GST rate slabs .

There are currently 4 slabs of GST _{^{(5%,12%,18%,28%)}} . The GST Council has revised the GST. These amendments will be applicable across India from September 22, 2025. From September 22, 2025, only 2 main slabs of GST will remain. Only two main slabs will remain, namely 5% and 18%. source: PIB (Press Information Bureau), Government of India

Who will get the benefits of GST 2.0 ?

Consumers will definitely benefit from this. And the business community will also benefit.

Most of goods or services which were in the 28% slab will come in 18%. That means goods will become cheaper. Goods in the 12% slab will come in 5%. Some important goods will not be subject to GST at all. i.e. 0% GST

• Oil, soap, shampoo, toothbrush, etc. will come down from 18% to 5%. This means that most grocery items will become cheaper.
• Essential medicines will come down from 12% to 5%. Some medicines will come under 0% GST.
• Goods like two-wheelers, small cars, TV, AC, cement etc. will come down from 28% to 18%.
  • This means that building a house and buying a car will become cheaper. ( From September 22, 2025 )
• Farm machinery, agricultural irrigation equipment, etc. will attract only 5% GST instead of 12%.
• Chivda, sauce, biscuits, chocolate, butter, ghee, etc. will now attract only 5% GST, which was earlier 12-18%.
• Tobacco, pan masala, luxury goods, cars longer than 4 meters, two-wheelers with a capacity of more than 350 cc, etc. Goods will attract 40% GST. 🍻🏎️
  • Previously, GST was around 50% on similar items.
• 0% GST on personal health insurance, personal life insurance. So that India becomes more medically safe. 🏥👩🏻‍⚕️
• Mobile phones, laptops will continue to attract 18% GST. So getting a new mobile phone will not get cheaper after 22 september, 2025.

You can check the GST amount to be charged on any item from September 22, 2025 on the government website — PIB- GST

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How will the government benefit ?

An average of Rs 1.84 lakh crore (Central and State governments combined)  in GST is collected in the government treasury every month  .

• However, the government is likely to receive less tax due to ‘GST 2.0’.
  • Because most items have now been included in the lower tax slab.
• But the government will not have to bear this loss for much longer.
  • Because as goods become cheaper, consumers will buy more goods, which will prevent the government from feeling the loss in GST revenue.

We will buy more because the price has come down. And so even if the tax percentage is reduced, the number of customers paying GST will increase.

• Considering the global situation, the government has taken this good decision. In August 2025, the US imposed a 50% tariff on Indian goods in the US.
  • This means that Indian goods will become expensive in America. American residents will buy cheaper American goods instead of Indian goods.
• We can counter the tariffs imposed by the US by playing the game of reducing GST.

That is, due to the tariff, less Indian goods will be sold in America. So India will suffer. Then Indian goods should be sold in India. And so that more goods can be sold in India, it is necessary to reduce GST!

How it will impact the Indian economy ?

• Educational materials will be cheaper. Compass boxes, mathematical instruments etc. will come under the GST slab of 5% from 12%.
  • Zero percent GST on books, sharpeners, pencils, erasers, maps, educational charts, etc.
• The construction of housing and infrastructure will be done at a lower cost.
  • Marble, granite, bricks will now attract 5% GST. Earlier it was 12%.
  • Cement will now be subject to 18% GST. which was 28%.
• India will be able to recover from the deficit in imports and exports due to this lower GST rate.
  • We will buy more of our country’s goods because the prices have come down.
• Buses, trucks, three-wheelers now have 18% GST. Earlier it was 28%.
  • 18% GST on their auto parts too.
  • This means that the number of vehicles transporting goods in the country will increase.
• Such a tax reduction before Diwali would be good for the country’s economy.
  • Sales of two-wheelers and four-wheelers will increase. The economy will get a boost.
  • If you are planning to buy a motorcycle or a car, then be patient until September 22, 2025. After this date, you will get cars cheaper.

Tax-related rules change from time to time, keeping in mind the domestic and international situation. Such changes are necessary. Due to such dynamic decisions the country’s economy remains stable. We, as consumers and as conscious citizens, should pay attention to these things.

thank you

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