GST 2.0: What Gets Cheaper After September 22 and What to Buy Now

The government has revised Goods and Services Tax (GST) rates, effective from September 22, 2025 while the move impacts automobiles, electronics, daily essentials, food staples, healthcare, insurance, clothing, beverages, and entertainment. Essentials and mass-market goods will get cheaper. Luxury cars, premium bikes, designer wear, caffeinated beverages, and event tickets will turn costlier. The GST change has created a split shopping calendar, making purchase timing critical for households this festive season.

What to Buy After September 22?

Consumers should wait for the following categories:

Vehicles & Auto Components

• Small cars (≤1,200 cc petrol / ≤1,500 cc diesel, ≤4 m length): 28% → 18%
• Bikes ≤350 cc: 28% → 18%
• High-value cars and bikes: overall burden reduced due to cess removal, though base GST remains high

Read More: Why GST Reform 2025 Makes This Festive Season Brighter For The Common Man And Farmers?

Electronics & Appliances

• Televisions: 28% → 18%
• Air conditioners: 28% → 18%
• Dishwashers: 28% → 18%

Everyday Essentials

• Hair oil, soap, shampoo, toothpaste, toothbrush
• Talcum powder, shaving cream, kitchenware, tableware
• Umbrellas, bicycles
• Ghee, butter, dry fruits
• All reduced from 12–18% → 5%

Food & Bakery Staples

• Bread, chapati, roti, paratha, paneer (pre-packed)
• UHT milk, noodles, biscuits, chocolates
• Sauces, cornflakes
• Most cut to 5% or even GST-free

Healthcare & Insurance

• Life-saving drugs, spectacles, diagnostic kits, oxygen, medical devices: 5% or exempt
• Individual life and health insurance premiums: fully exempt

Footwear & Textiles

• Footwear priced under ₹2,500: 5%
• Apparel in the ₹1,000–₹2,500 range: 5%

What to Buy Before September 22?

Some products will face higher taxes while shoppers should buy these earlier:

Luxury Cars & Bikes

• SUVs and big cars (>1,500 cc engines or >4 m length): taxed at 40%
• Bikes >350 cc: 28% → 40%

Clothing & Fashion

• Apparel priced above ₹2,500: higher GST post-revision
• Premium ethnic wear and designer outfits: best purchased before the hike

Caffeinated & Packaged Beverages

• Energy drinks: 40%
• Cola and soft drinks: 40%
• Entertainment & Gambling
• IPL tickets priced above ₹500: 40%
• Casino entries and lotteries: 40%

Tobacco & Pan Masala

• No change yet, but new 40% rate with cess likely in future rollouts

Read More: GST 40% Slab Explained: Why It’s Causing Controversy

Bottom Line

The GST overhaul has divided shopping into two phases. Essentials, mass-market goods, vehicles, appliances, and healthcare products are best bought after September 22. Luxury cars, premium bikes, high-end clothing, caffeinated drinks, and event tickets should be purchased before the revision and with smart timing, families can save more while preparing for festive season needs.