The Goods and Services Tax (GST) Council is discussing major revisions in the tax slab structure—an update that could impact everything from your morning chai to your monthly broadband bill.
If you’re wondering how these proposed changes affect your day-to-day spending, Vizzve Finance breaks it down simply—and shows how to stay one step ahead with smart budgeting.
💼 What Are the New GST Slab Proposals?
India currently uses four main GST slabs: 5%, 12%, 18%, and 28%.
The proposal aims to:
Merge 12% and 18% into a single slab (likely ~15%)
Reclassify luxury goods and services
Adjust tax rates on essentials, dining, online services, and fuel alternatives
🎯 Goal: Reduce complexity, improve compliance, and boost tax revenue.
🧾 How It Could Impact Your Daily Budget
🍞 Groceries & Essentials
Items currently at 5% may stay untouched
Packaged food items or branded staples may see a small hike if moved to a merged 15% slab
🍽️ Dining Out
Restaurants currently taxed at 5% (non-AC) and 18% (AC)
Uniform slab (~15%) might mean higher bills for casual dining and food delivery apps
💻 Digital Services & Subscriptions
Netflix, Spotify, OTT platforms, and even cloud storage services may cost more
UPI-based services may see new classifications in tax bands
👕 Clothing & Daily-use Items
Apparel under ₹1,000 currently taxed at 5%
Could jump to a unified rate—meaning you pay more for affordable fashion
🔌 Utilities & Internet
Broadband, DTH, electricity (commercial use) may fall under revised GST brackets, slightly increasing bills
🧠 Vizzve Finance Tips to Beat the GST Squeeze
1. Update Your Monthly Budget
Use Vizzve’s AI-powered planner to simulate new slab impacts on your grocery, dining, and utility categories.
2. Stock Up on Essentials Before Price Hikes
If tax changes are confirmed, consider bulk-buying non-perishables in advance.
3. Shift to Local or Unbranded Products
These often fall under lower or exempted tax categories and can ease the cost pressure.
4. Leverage Credit Card Offers or UPI Cashback
Reduce effective prices by using Vizzve’s curated credit/debit card deal comparisons.
📌 What Should You Do Right Now?
Track GST updates via trusted sources
Download the Vizzve app to auto-adjust your expense tracking with every policy change
Consider investing in tax-efficient products to offset rising consumption costs
❓FAQs:
Q1. Are these new GST slabs confirmed?
Not yet. They are currently in the proposal stage by the GST Council, with high chances of rollout in 2025–2026.
Q2. Will petrol and diesel be included under GST now?
Fuel inclusion is still under debate. Some alternative fuels may be reclassified for lower GST benefits.
Q3. How can I save money if prices rise?
Use budgeting tools, shift brands, take advantage of EMI plans on high-value purchases, and track your spending weekly.
Q4. Will these changes affect salaried people the most?
Yes, especially if you're in the middle-income bracket, as daily expenses will shift subtly but steadily.
Published on : 19th July
Published by : SMITA
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