New GST Rates 2025 Live Updates: India’s biggest tax revamp since 2017 takes effect from today, September 22. Here’s everything that is getting cheaper from today.
New GST Rates 2025 Live Updates: In a major relief for consumers and small businesses, the GST Council, comprising the Centre and states – under PM Narendra Modi, has decided to reduce tax rates on goods and services, from September 22 the first day of Navaratri.
From today, the benefits of the GST rate cuts will start reaching the lower-middle class, farmers, and entrepreneurs. So, what is getting cheaper in this new GST rate sheet?
As per the reports, nearly 375 items ranging from kitchen essentials to electronics, medicines, equipment, and even vehicles will become cheaper. At the same time, for entrepreneurs, especially small businesses, processes such as GST registration and claiming refunds will become easier.
PM Modi Announces New GST Rates To Be Effective From September 22
During his address to the nation on Sunday, Prime Minister Narendra Modi said, “GST bachat utsav (savings festival)”, coupled with the hike in income tax exemption to Rs 12 lakh given in the Budget, will be a “double bonanza” for people.
He further added, “Now, there will be only 5 per cent and 18 per cent tax slabs in GST. Most everyday items will become cheaper. Food items, medicines, soap, brush, paste, health and life insurance, many such goods and services will either be tax-free or only have 5 per cent GST.”
Full List of Healthcare Items Getting Cheaper Under New GST Rates
Check the complete list of items that are getting cheaper from today (22nd September, 2025) – as new GST rates kick in:
Medicines: Around 33 lifesaving drugs will become completely tax-free from today. This list contains three cancer and rare disease medications. All other medicines move from 12% to 5% – the biggest tax relief for healthcare in India.
Medical equipment: Several medical equipment such as glucometers, diagnostic kits, surgical equipment and medical devices, will become affordable for patients and health care providers.
Wellness services: Gym memberships, salon services, barber visits, yoga classes and spa treatments drop from 18% to 5%, though businesses lose input tax credit benefits.
Complete exemption: As per the new GST rate cut 2025, both life insurance policies (term, ULIP, endowment) and health insurance (including family floaters and senior citizen plans) will become completely tax-free, delivering substantial savings to policyholders.
Everyday Use Items That Are Getting Cheaper
Apart from medicines, here is the complete list of items that common people use on a daily basis – which are also getting cheaper from today:
Dairy products: Dairy products such as Ghee will also see a major price cut between 40-70 per litre (bringing 1-litre packs down to 610-750), while butter price drops by 4 per 100g pack to 58. Paneer also becomes 4 cheaper per 200g pack at 95.
Packaged foods: Namkeen and bhujia, instant noodles ( 4 reduction to 116), chocolates (premium spreads down 50, luxury boxes down 100), jams, ketchup and sauces all get cheaper as they move to the 5% bracket.
Beverages: Fruit juices see 5-10 reductions (apple juice down to 105, mango drinks to 65), coffee blends drop 30-95 per pack, and bottled water becomes 2 cheaper, though aerated drinks remain in the higher tax category.
Completely tax-free: Ultra-high temperature milk, prepackaged paneer and all Indian breads including chapati, roti and parantha become completely exempt from GST.
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