Your Wallet Will Thank You: Complete Guide to What's Getting Cheaper from Sep 22, 2025

Good news for shoppers! From Sep 22, 2025 a lot of everyday essentials, personal care products, electronics, agriculture, motor vehicle and even baby supplies will become more affordable. The GST Council has restructured tax rates on a wide range of items, while market adjustments are also pushing down prices in big-ticket categories like motor vehicles. For consumers, this means real savings on both daily essentials and lifestyle upgrades.

This guide walks you through what’s getting cheaper, category by category, so you know exactly where your wallet can breathe easier. Let’s get started!

Middle-Class Gains Under the New GST Structure

The upcoming GST reform, effective September 22, introduces a simplified two-slab system, 5% and 18%, removing the four-slab system, while increasing the rate on sin and luxury goods to 40%. This strategic move is aimed at boosting domestic consumption by enhancing the purchasing power of the middle class, which plays a pivotal role in driving the economy.

It also aligns seasonal spending trends and offers partial relief to manufacturers impacted by external tariffs. According to Finance Minister Sitharaman, this overhaul marks the most significant reset of the GST framework since its inception, with the ‘Aam Aadmi’ at its core.

What Changes Must You Look for?

A broad range of daily-use goods, including groceries, personal care items, baby products, household utensils, consumer electronics, and more, will become more affordable due to tax restructuring. Here is a detailed guide on what to expect:

Cheaper Groceries and Essentials

• Milk & Dairy: Ultra-High Temperature (UHT) milk is now tax-free, while butter, cheese, and condensed milk move to 5% GST.
• Staple Foods: Items like packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, and ready-to-eat snacks now attract just 5% tax.
• Nuts & Dry Fruits: Almonds, cashews, pistachios, and similar dry fruits are down from 12% to 5%.

These cuts mean healthier breakfast options and snacks will be lighter on your monthly bill.

Personal & Household Items

• Personal Care: Toothpaste, hair oil, soaps, toothbrushes, and shaving cream all fall from 18% to just 5%.
• Household Supplies: Utensils, napkins, diapers, sewing supplies, tableware, and feeding bottles are now cheaper.
• Everyday Goods: Bicycles, umbrellas, kitchenware, and bamboo furniture move to a lower tax bracket.

Families can expect significant relief on products that form part of their daily lifestyle.

Babies & Clinical Essentials

• Baby napkins, diapers, and feeding bottles all drop from 12% to 5%.
• Sewing machines and parts, crucial for both households and healthcare use, are also more affordable.

This is excellent news for new parents and caregivers, as it reduces essential childcare costs.

 Electronics & Home Appliances

If you’ve been planning to buy a TV, an air conditioner, or a dishwasher, now is the perfect time to make a purchase. GST cuts have translated into:

• Direct savings of 8-9%.
• Discounts ranging from ₹2,000 to ₹23,000, depending on the model.

For middle-class households planning upgrades, this means luxury is becoming far more accessible. 

Motor Vehicles/Automobiles

• Small and Entry-level Cars: Prices are expected to fall due to GST restructuring and lower cess on specific categories.
• Electric Vehicles (EVs): Continue at a low 5% GST, making eco-friendly transport more affordable.
• Auto Parts & Accessories: Many spares shift from 28% to 18%, reducing repair and maintenance costs.

This means whether you’re buying a new vehicle or maintaining an old one, transportation is about to get more pocket-friendly.

Agricultural & Rural Essentials

• Tractors and Agricultural Equipment: Reduced GST rates make farm machinery more affordable for farmers.
• Tools & Inputs: Irrigation pumps, ploughing equipment, and related machinery now attract lower tax rates.
• Bamboo and Wood Products: Widely used in rural homes and farms, they’re now under a cheaper bracket.

For farmers and rural households, this translates into lower operational costs and better access to modern tools.

Healthcare

Medical costs are a significant burden for many families, but this round of cuts will help reduce expenses. Expect savings in:

• Medical Devices: Surgical gloves, diagnostic kits, bandages, and hospital supplies reduced to 5%.
• Medicines: Several life-saving drugs and vaccines remain at low or nil GST, with more items added to the list.
• Clinical Equipment: Some diagnostic and mobility aids (like wheelchairs) become more affordable.

Education & Learning Supplies

Students and parents will see relief as the cost of education materials drops. The changes include:

• Stationery: Notebooks, pencils, pens, chalk, and drawing books now fall under 5% GST.
• Student Needs: School bags, uniforms, and basic study materials are cheaper.
• Digital Learning Tools: Select educational software and e-learning devices are available at reduced rates.

Quick Reference Table for Major Price Drops

Here is the overview of the goods and services tax regime’s tax drop rates:

Category	Items Included	Previous Tax Rate	New Rate	Notes
Dairy	UHT Milk, Butter, Cheese, Paneer	5%-12%	0%-5%	UHT milk is tax-free; others are at 5%
Snacks/Food	Biscuits, Pasta, Chocolates, Cornflakes, Sausages	12%-18%	5%	Includes staple, ready-to-eat foods
Dry Fruits	Almonds, Cashews, Pistachios, Hazelnuts	12%	5%	Applies to popular dry fruits
Personal Care	Toothpaste, Hair Oil, Soaps	18%	5%	Everyday essentials are now cheaper
Baby/Kitchen	Diapers, Utensils, Napkins, Sewing Machines	12%	5%	Savings for families and households
Electronics	TVs, ACs, Dishwashers	18%-28%	18%	₹2,000–₹23,000 direct savings
Motor Vehicles	Entry-level cars, Auto parts, EVs	28% and 18%	18% and 5%	Repairs and EVs are cheaper
Agriculture	Tractors, Irrigation pumps, Bamboo products	12% and 18%	5%	Direct relief to farmers
Healthcare	Gloves, Bandages, Diagnostic Kits, Medicines	12%-18%	5% or Nil	Lower hospital and patient cost
Education	Notebooks, pencils, bags, e-learning tools	12%	5%	Relief for students & parents

 

Consumer Tips Under the New GST Regime 2025

Here are some tips you can follow:

1. Understand the GST Slabs

Familiarise yourself with the revised GST structure. The new regime simplifies tax rates into four main slabs: 0%, 5%, 18%, and 40%. Essentials like food grains, healthcare, and education are tax-free (0%). Daily-use items are taxed at 5%, standard goods and services at 18%, and luxury or sin goods like tobacco and online gaming at 40%.

2. Always Ask for a GST Invoice

Ensure that you receive a proper bill with a clear GST breakdown whenever you make a purchase. This will help you verify that the correct tax rate has been applied and protect you in case of disputes or returns.

3. Time Your Purchases Smartly

Many revised GST rates will take effect from September 22, 2025. Plan major purchases, such as electronics, vehicles, or appliances, after this date to benefit from potential price reductions.

4. Use GST Exemptions to Your Advantage

Take full advantage of items and services that are now GST-free. Health and life insurance policies are exempt, making them more affordable. Education services also remain tax-free, so there’s no GST on tuition or coaching fees.

5. Shop from GST-Compliant Platforms

When shopping online, use platforms that reflect updated GST rates and provide transparent, GST-inclusive billing. This ensures you’re not overpaying and helps you track your expenses accurately.

6. Stay Updated on GST Changes

Keep an eye on updates from the GST Council or reliable financial news sources. Tax rates and rules may continue to evolve, and staying informed will help you make smarter financial decisions.

To Conclude 

Starting September 22, you can look forward to a more budget-friendly season, from groceries to gadgets. With GST rate reductions and price adjustments across various categories, households are likely to see noticeable savings in their monthly spending. To make the most of this shift, be smart with your plan: stock up on everyday essentials, schedule major purchases like appliances or electronics, and take full advantage of this consumer-focused reform.

 Frequently Asked Questions

Which notification provides for the revised rates?

The changes in GST rates will be notified in the rate notification. The notification will be placed on the CBIC website.

Does the exemption to UHT milk also cover plant-based milk?

All dairy milk except UHT was already GST-exempt, and now UHT milk has been exempted for consistency. Earlier, plant-based milk drinks were taxed at 18%, and soya milk drinks at 12%. Both have now been reduced to 5% GST rate.

What is the GST rate on medicines?

All medicines have been prescribed a concessional rate of GST of 5%, except those specified at a nil rate.

What is the GST rate on motorcycles?

Motorcycles with an engine capacity of up to 350 cc are subject to a GST rate of 18%, whereas those with an engine capacity exceeding 350 cc are subject to a GST rate of 40%.