New GST Rates 2025: What’s Cheaper and What’s Costlier — From Soaps to Small Cars

The GST Council has approved a new two-tier structure of 5% and 18%, effective September 22, aimed at structural reform and lowering rates on essential items. Daily essentials like soaps, shampoo, hair oil, toothpaste, bicycles, dairy products, roti, and paratha see reduced or nil GST. Health insurance, life policies, cancer drugs, maps, charts, notebooks, tractors, and irrigation systems are exempted or reduced to 5%. Electronics like TVs (all sizes) and ACs drop to 18%. However, small cars, motorcycles (≤350cc), and auto parts will be costlier at 18%. Luxury goods, pan masala, tobacco, and sugary drinks face 40% GST.