Prime Minister Narendra Modi, in his Independence Day speech on 15 August, hinted at a big change in the GST system.
He mentioned that people will get a “big gift” this Diwali (2025). Following this, the Finance Ministry has recommended two main tax slabs
and one special slab to the Group of Ministers. Now the discussion is centered on which products will become cheaper.
Possible GST Changes
According to sources, products currently under 12% GST may move to the 5% slab, while goods under 28% GST may be shifted to 18%.
At the same time, a 40% GST slab may be introduced for products like tobacco, cigarettes, and beer.
If approved, the new system could have three slabs – 5%, 18%, and 40%.
Items That May Become Cheaper
If the reforms are implemented, essential and commonly used goods could become cheaper. This includes:
Grocery items
Medicines
Television and washing machines
Farming-related goods
Bicycles
Insurance and education-related services
These reductions are expected to give direct relief to farmers and the common man.
Current 12% GST Products
At present, a 12% GST is applied on items like:
Dry fruits
Milk products
Frozen vegetables
Pasta, namkeen, tooth powder
Bicycles, furniture, handbags
Pencils, slippers (below ₹1000)
In the upcoming reforms, these goods may shift to the 5% slab, making them cheaper.
Currently, the government has four GST slabs – 5%, 12%, 18%, and 28%, but this may soon be changed.
