Ashwini Vaishnaw@AshwiniVaishnaw · Sep 4, 2025

Next-gen reforms in GST 🟡 5% for essentials 🟠 18% for standard goods 🔴 40% for super luxury & sin items 🧵See what…

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Summary

India's new GST reform introduces a tiered tax structure with 5% rates on essentials (food, medicines, hygiene products), 18% on standard goods, and 40% on luxury and sin items. The changes aim to reduce costs for middle and low-income families while supporting agriculture, healthcare, textiles, and other key sectors.

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#1
Next-gen reforms in GST 🟡 5% for essentials 🟠 18% for standard goods 🔴 40% for super luxury & sin items 🧵See what all gets cheaper👇
#2
A matter of great joy for all of us! PM @narendramodi Ji has decided to reduce GST rates on practically everything used in the daily lives of our middle-class and low-income families.
#3
1⃣Essentials First! •⁠ ⁠🍽️ Paratha, Paneer, Milk (Ultra High Temperature): 0% now •⁠ ⁠🧴 Toothpaste, Soap, Shampoo: 18% → 5% •⁠ ⁠🩺 All medicines (including Ayurveda): 12% → 5%
#4
2⃣Kitchen + Hygiene = Major Relief •⁠ ⁠Butter, ghee, cheese, dairy spreads, fruit juices, pre-packaged namkeens, Bhujia – now at just 5% •⁠ ⁠Baby diapers, combs, shaving cream – 5% •⁠ ⁠Even your toothbrush & lotion are now in the lowest slab ➡️ Monthly household budgets will breathe easier
#5
3⃣Affordable healthcare for all •⁠ ⁠Many rare disease & cancer drugs: now 0% •⁠ ⁠12% → 5% on other medicines (Ayurveda/Unani/Homoeopathy), medical oxygen, diagnostic kits/reagents, glucometers/strips
#6
4⃣Lower cost of stationery •⁠ Notebooks, pencils/crayons, erasers, sharpeners, and several school supplies drop to 0%; •⁠ Geometry/colour boxes to 5%.
#7
5⃣Mobility becomes more affordable •⁠ ⁠Bicycles to 5% •⁠ ⁠Bikes/scooters ≤350cc, small cars, autos, passenger vehicles (10+ seats) and auto parts move from 28% → 18%
#8
6⃣Construction of your dream house to become cheaper🏠
#9
7⃣Boost to consumer electronics TVs >32”, ACs, dishwashers: from 28% → 18% now
#10
8⃣Lower input costs for Annadatas Tractors (including parts & tyres), harvesters, threshers, drip irrigation systems, sprinklers, etc. move to 5%
#11
9⃣Textiles, Handicrafts & Rural Artisans Objective: Encourage exports, protect heritage, support local crafts and MSMEs. •⁠ ⁠Handicraft idols/statues (wood, stone, metal): 12% → 5% •⁠ ⁠Brass, copper, aluminium artware: 12% → 5% •⁠ ⁠Channapatna, Sawantwadi, Thanjavur toys: 12% → 5% •⁠ ⁠Board games, dolls, Ludo/Chess/Carrom: 12% → 5% •⁠ ⁠Paintings, sculptures: 12% → 5%
#12
GST as Industrial Policy tool ✅ Agriculture: Cheaper machinery, input cost reduction ✅ Healthcare: Affordable access to essential drugs and devices ✅ Textiles & Handicrafts: Export-friendly, supports artisans ✅ Insurance: Lower GST → deeper coverage → “Insurance for All by 2047” ✅ EVs & Renewables: Climate-aligned tax incentives
#13
PM @narendramodi Ji’s gift to the nation. #NextGenGST Promised→ Delivered