: Big Changes Announced by GST Council
: Big Changes Announced by GST CouncilThe GST Council has finally released GST 2.0 rates, major changes to certain essential goods, vehicles and luxury goods. The structure will lower taxes on mass consumption goods but increase cess on luxury and sin goods.
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✅ What Will Get Cheaper Because Of GST 2.0 rates
• Small Cars & Two Wheelers (<350cc) – Reduced to 18%
• Daily Essentials (Packaged Foods, Toiletries, Kitchenware…) – 12% to 5%
• Electronics (mobiles, laptops below ₹50000) – slab to 12%
• Textiles & Footwear (<₹1000) – Reduced to 5%
• Electric Vehicles (EV) – will stay at 5% and subsidies.
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❌ What Will Get More Expensive Because Of GST 2.0 rates
• Luxury SUVs & Cars – 18% GST + 22% cess.
• Big Bikes (>350cc) – cess increased, meaning higher costs for premium.
• Alcohol & Tobacco – cess increased.
• Imported Electronics (mobiles >₹50000, premium laptops) – slab increased to 28%.
• Luxury Watches, Jewellery, Perfumes – 28% GST.
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📊 Industry Experts React
• Auto Sector: “small cars will see a high demand with big bikes and premium cars consumers might change their minds”
• Consumer Goods – FMCG/modern trade companies can expect high sales with reduced GST on essentials.
• Electronics market – possible cheaper smartphones will drive during festive demand.
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🔮 What It Means For You
• Middle-class households will save more on items they regularly use.
• Students and professionals will benefit from the lower prices of laptops and handhelds.
• People who enjoy spending money on larger bikes, SUVs, and luxury items will see higher prices!
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❓Frequently Asked Questions
Q1. When will the GST 2.0 rates effectiveness date be?
A1: Might be effective from next month.
Q2: Are electric vehicles cheaper under GST 2.0?
A2: Yes, EVs will continue to attract just 5% GST.
Q3: Why are SUVs and big bikes more expensive?
A3: They will now attract an additional cess, as part of GST 2.0.