India’s GST Council has unveiled a game-changing reform, effective September 22, 2025, simplifying the tax structure into two main slabs: 5% and 18%. This overhaul eliminates the 12% and 28% slabs, making daily essentials more affordable. Finance Minister Nirmala Sitharaman announced these changes as a “Diwali gift” to boost consumer spending and ease compliance for businesses.
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Mobiles and Laptops See Significant Price Drops
The new GST rates on mobiles and laptops in September 2025 have been reduced to 18% from the previous 28% for laptops and some mobile accessories. This shift makes smartphones, feature phones, and laptops more accessible, especially for budget-conscious buyers. Consumers can expect savings on devices, with prices reflecting the streamlined 18% tax across India.
Everyday Goods Become More Affordable
Common household items like toothpaste, shampoo, and soaps now fall under the 5% slab, down from 12% or 18%. Food items such as butter, ghee, and namkeens also benefit from this reduction, easing the financial burden on families. The reforms aim to make essentials budget-friendly while supporting India’s economic growth.
Luxury Goods Face Higher Taxes
A special 40% GST rate targets luxury and sin goods like tobacco, pan masala, and high-end vehicles. This ensures that non-essential items bear a heavier tax load, freeing up resources to lower rates on daily necessities. Online gaming also falls under this demerit category, aligning with the government’s focus on responsible consumption.
A Win for Consumers and Businesses
These reforms simplify compliance, reduce prices, and promote affordability. By slashing GST on mobiles, laptops, and essentials, the government is paving the way for a more inclusive Digital India, ensuring technology and daily goods are within everyone’s reach.
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