New GST rates are set to come into effect on September 22nd. Many goods and services will become cheaper, while others will cost more. Let’s find out.

Related Articles

There is still a deadlock over seat sharing in the Grand Alliance for the Bihar Assembly elections. It is expected that the seat sharing will be announced after brainstorming in Delhi today.

19 hours ago

Delhi Government’s Cooperation Minister Ravinder Indraj Singh announced that new branches will be opened in Delhi to give new energy and direction to the cooperative movement.

20 hours ago

West Bengal: The gang rape of a medical student from Odisha in Durgapur has sparked nationwide outrage. Three accused have been arrested and remanded in police custody.

20 hours ago

New GST rates are set to come into effect on September 22nd. This change will significantly alter the monthly budget of urban families. Many goods and services will become cheaper, while expenses on others will increase. Let’s find out how GST 2.0 will impact your daily life.

Majority of Expenses in the 5% Slab
According to a report by FICCI and Thought Arbitrage Research Institute, 66% of urban families’ total expenditure will now be on goods and services that attract either 0% or only 5% GST. Currently, this share is around 50%.

• Expenditures in the 0% slab will increase from 32.3% to 32.9%.
• The share of expenditures in the 5% slab will increase from 18.2% to 33.3%.
• The 12% slab has been completely abolished.
• The share of expenditures in the 18% slab will decrease from 16.9% to 14.1%.
• The tax share for items taxed at 28% or more will be reduced to 0.2%.

Salons, gyms, and yoga will now be cheaper.
The biggest relief will be on everyday services. Services like salons, spas, gyms, and yoga will now be taxed at only 5% GST, up from 18%. For example, if someone’s salon bill is ₹2,000, they will now be taxed at ₹100, compared to ₹360 previously. However, businesses will not benefit from input tax credit.

Relief on essential goods
Essential items like soap, shampoo, shaving cream, toothpaste, toothbrushes, dental floss, and face powder are now in the 5% tax slab. The tax on prescription glasses has also been reduced to just 5%. Bicycles and their parts will now be taxed at 5% GST, up from 12%. However, mouthwash is not currently included in this change.

Costs on food delivery will increase
Those who order food online will be hit. Starting September 22nd, delivery charges on apps like Zomato, Swiggy, and Magicpin will be charged 18% GST. This will result in an additional cost of ₹2 to ₹2.6 per order. This impact will be clearly visible for those who order frequently during the festive season. The new GST rates will help urban families save on personal care and essential items. Services like salons, gyms, and yoga will also receive relief. However, if you frequently order food online, you will have to pay higher delivery charges than before.