GST rate cuts from today: 375 items get cheaper — from dairy to cars and electronics, here's what will cost you less
The Goods and Services Tax (GST) rate rationalization, announced by the GST Council earlier this month, takes effect today, September 22, 2025. Union Finance Minister Nirmala Sitharaman stated the aim is to reduce GST slabs from four to two (5% and 18%), with a special 40% rate for select items and sin goods, providing "relief for the middle-class." Approximately 375 items, including automobiles, electronics, kitchen staples, and medicines, are expected to become cheaper. Specific examples include reduced prices for milk-based beverages, coffee, biscuits, butter, dry fruits, personal care products like shampoos, and electronics such as ACs and TVs. Medical devices will also see a GST cut to 5%. In the auto sector, effective tax on hatchbacks will drop to 18%, leading to significant price reductions for models like Maruti Suzuki Alto K10 and Tata Altroz. Dairy brand Amul has already reduced prices for over 700 products. Conversely, soft drinks, other non-alcoholic beverages, and petrol/diesel vehicles exceeding certain specifications will become more expensive due to increased GST rates.
