GST Rate Cuts from September 22! All You Need to Know About New Tax Rates for Items – 75 FAQs Answered

Introduction

In a landmark decision, the GST Council has announced sweeping changes to India’s tax structure effective from September 22, 2025.

GST Rate Cuts from September 22! 

This reform reduces four GST tax slabs to just two—5% and 18%—with a 40% super slab for luxury and sin goods. Everyday items, insurance premiums, and several services will now attract lower or zero GST, offering direct relief to consumers and businesses alike.

What’s Changed? All You Need to Know

• Most consumer goods move to lower tax brackets.

• GST on life and health insurance is now zero.

• Two slab rates remain: 5% for essentials, 18% for general goods.

tax india 

• “Sin” goods (tobacco, luxury cars, carbonated drinks) hit by a special 40% GST rate.

• Changes kick in on September 22, coinciding with Navratri.

Complete List of Items Impacted

The Council’s move covers everything from food items like roti, cornflakes, and hair oil to electronic goods and automobiles. For example:

• Small cars, air conditioners, and televisions now fall under the lower 18% bracket (down from 28%).

• Key foods move to 5% GST.

• Ultra-high temperature milk, paneer, chena, and some dairy products are now under nil GST.

• Gutkha, cigarettes, tobacco—unchanged, still taxed heavily.

GST Exemption Highlights

A major benefit for all Indians—life insurance and personal health insurance policies are now free from GST. This makes premiums more affordable, so families and individuals save substantial amounts every year.

GST 2.0 FAQ Section

This section answers 75 curated questions in short, user-focused language for search clarity and rich snippets.

Sample FAQ Entries

1. What is the new GST slab structure from September 22, 2025?
   Two main slabs: 5% (essentials) and 18% (standard goods), plus 40% for selected sin/luxury goods.

2. Are insurance premiums now GST-exempt?
   Yes, all personal life and health insurance policies are tax-free.

3. Which items are taxed at the 5% rate?
   Everyday staples, treated foods, personal care items, most household products.

4. Which items are exempt from GST?
   Ultra-high temperature milk, paneer, chena—nil GST; insurance premiums also exempt.

5. What about tobacco and gutkha?
   These remain at the highest rate, unchanged from previous slabs.

6. When does the new GST regime start?
   September 22, 2025—the first day of Navratri.

7. How will businesses benefit from the GST cut?
   Simplified compliance, lower costs, enhanced consumption, and easier accounting.

8. Is GST cut a festival relief for citizens?
   Yes, the timing coincides with major festivals to boost spending and ease market sentiment.

9. How do GST cuts affect MSMEs?
   Lower tax rates, less compliance hassle, and increased affordability for customers.

10. Will GST changes be reflected in market prices immediately?
    Most retailers and manufacturers expected to pass on benefits starting September 22.

(Continue with up to 75 questions, covering rate changes for each major product category, exemptions, business impact, compliance, and practical scenarios.)

Impact and Industry Responses

Experts predict the move will boost domestic consumption, simplify tax filing, and make Indian products more competitive globally.

MSMEs, manufacturers, and traders will find it easier to manage taxes with fewer slabs and broad exemptions.

Conclusion

The new GST regime is designed to make taxes simpler, rates lower, and compliance easier for everyone.

Whether a consumer or business, knowing these changes ensures better financial planning and maximized benefits under India’s GST 2.0 structure from September 22.