The GST Council’s latest revamp has reshaped the indirect tax landscape in India. With new slab adjustments, several everyday essentials and luxury products are set to get cheaper, while some goods and services may become costlier. Here’s a detailed look at the changes and their impact on consumers.
1. Items Getting Cheaper Under GST
The revised GST slabs aim to reduce the burden on essential goods and services. Some items that will now cost less include:
Packaged food items (certain staples moved to a lower slab).
Healthcare essentials such as medical devices and life-saving drugs.
Public transport services in selected states.
Eco-friendly products including solar panels and green appliances.
2. Items Becoming Costlier
To balance revenue, the council has raised tax slabs for non-essential and luxury items. The following will see price hikes:
Luxury cars & SUVs (higher GST + cess).
Branded clothing & accessories.
Alcoholic beverages in states under GST coverage.
Gadgets and electronics including high-end smartphones and tablets.
3. Impact on Consumers
Middle-class families may benefit from lower grocery and healthcare costs.
Urban consumers could face higher expenses on lifestyle and luxury items.
Businesses in luxury and electronics sectors may see slower demand.
4. Government’s Aim Behind Revamp
The GST overhaul seeks to:
Simplify the tax structure.
Reduce compliance burden for small businesses.
Balance state revenues post-pandemic.
Encourage green and sustainable consumption.
Conclusion:
The GST revamp of 2025 is set to directly impact household budgets. While essential goods are becoming more affordable, luxury and lifestyle categories will now cost more. Consumers are advised to plan purchases accordingly and businesses must prepare for shifting demand trends.
FAQ :
Q1: What is the biggest change in GST 2025?
The focus is on lowering rates for essentials and hiking them for luxury goods.
Q2: Which products became cheaper under GST?
Medical devices, solar panels, select packaged food items, and public transport services.
Q3: Which products became costlier?
Luxury cars, branded clothing, premium electronics, and alcohol.
Q4: Why did the government make these changes?
To make essentials affordable while generating revenue from non-essentials.
Q5: How will this impact households?
Everyday expenses may reduce slightly, but lifestyle and luxury spending will rise.
Published on : 4th September
Published by : SMITA
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