GST 2.0 Update – New Tax Structure Effective from Navratri 2025
The Government of India has introduced a major overhaul in the Goods and Services Tax (GST) system. Starting 22nd September 2025 (Navratri Day 1), a simplified GST structure has come into effect across the country.
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🔑 Key Changes
1. Simplified GST Slabs
0% – Essential goods and select services
5% – FMCG, daily-use products, dry fruits, personal care items
18% – Standard goods and services
40% – Luxury and sin goods such as tobacco, alcohol, premium vehicles, and carbonated drinks
2. Relief for Consumers
Milk, dairy products, processed food, and insurance services are now under 0% or 5% slab.
Small cars, scooters, and motorcycles (under 350cc) are now cheaper due to lower GST rates.…
3. Higher Tax on Luxury Items
High-end cars, motorcycles above 350cc, tobacco, liquor, and soft drinks now attract 40% GST, increasing their prices.
4. Support for Businesses
Businesses are allowed to sell old stock with revised MRP stickers.
Reuse of old packaging has been permitted until December 31, 2025.