India’s new GST rates come into effect from September 22, 2025, marking a significant change in the taxation system. The government has simplified GST slabs into just 5% and 18%, making most goods and services easier and more affordable to buy. Ultra-luxury items and certain sin goods, such as sugary drinks and tobacco, face higher taxes. PM Modi announced the GST Bachat Utsav, starting from Navratri 2025, aimed at giving relief to shoppers, middle-class families, farmers, women, and traders. These GST reforms aim to boost local products and support a self-reliant India.
GST Bachat Utsav
Under the new GST structure, premium clothes costing over Rs 2,500, aerated beverages with added sugar, motorcycles above 350 cc, and private aircraft will attract a 40% tax. Tobacco and related products remain in the 28% plus cess bracket. The removal of the extra compensation cess on some luxury items may even reduce the overall tax. Everyday essentials, such as clothing under Rs 2,500, food items, and basic services, continue to enjoy lower rates, making festive shopping easier for ordinary buyers.
GST Bachat Utsav Beginning from Today! pic.twitter.com/AxbTge7oQT
— CBIC (@cbic_india) September 22, 2025
Savings and Benefits During Navratri
The GST Bachat Utsav during Navratri 2025 allows consumers to save on a wide range of goods. Daily-use items, clothing, and household products remain affordable, while luxury purchases are fairly taxed. PM Modi emphasised that this initiative will help the middle class, farmers, youth, and small traders. By simplifying taxes and encouraging the purchase of local products, these GST reforms ensure that shoppers benefit directly from lower prices and a balanced tax system.
