The government has introduced new Goods and Services Tax (GST) rates starting today, giving major relief to the general public.
With these changes, many daily-use items will become cheaper, while luxury products will now cost more.
A new “sin tax” category has also been added, and the old 12% and 28% GST slabs have been removed.
What is the Sin Tax Category?
The government has created a new 40% sin tax slab, effective from today.
It includes:
Tobacco, cigarettes, and pan masala
Alcoholic beverages
Soft drinks and soda
Luxury products
Online gaming and betting
This category is meant for products that harm health or are considered non-essential luxury items.
New GST Rate Structure
0% GST: Milk, grains, medicines, and other essentials
5% GST: Essential and frequently used items (earlier taxed at 12% or 18%)
18% GST: Moderately priced goods, including some electronics and appliances (earlier 22%)
40% GST (Sin Tax): Gutkha, tobacco, alcohol, luxury cars, online gaming, and betting
What Will Become Cheaper?
From today, several daily-use items will cost less, including:
Soap, toothpaste, shampoo, and biscuits
Snacks and packaged juice
School supplies and educational materials
Clothing and footwear
Cement and home construction materials
The auto sector will also benefit from reduced GST rates, which may lower vehicle costs.
Relief for the Middle Class
The GST changes will help middle-class families reduce household expenses.
With lower taxes on daily essentials, education-related products, and even some electronics, the monthly budget is expected to stretch further.
What Will Become More Expensive?
Products in the sin tax category will now attract a high 40% GST, keeping them costly.
This includes tobacco products, alcohol, luxury cars, and premium lifestyle items.
Those who enjoy luxury goods will need to pay more taxes for them.
