The impact of GST 2.0 on daily essentials, as discussed in the 56th meeting of the GST Council, has captured the attention of people all over India.
Although one of the major impacts of GST 2.0 is on daily essentials, from groceries and healthcare to education and personal care, they would become more affordable and much less confusing, thanks to these changes.
The latest news on GST 2.0 is being celebrated for making the tax system simpler and more consumer-friendly than ever before. It is set to be effective starting 22nd September 2025.
So, what exactly do these GST updates mean for your budget and your daily life and what are their impacts on daily essentials? Read on to learn more about the impact of GST 2.0 on your daily lives.
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GST Latest Updates
The government has described GST 2.0 as a ‘next-generation GST reform’ aimed at building a simple, citizen-friendly taxation system. With most goods and services now moving toward just two key slabs: 5% and 18%, from the previous 4 slabs.
Compliance is expected to get easier for traders, while consumers experience lower prices. This latest GST update is not just about numbers; it’s about ease of living.
Prime Minister Narendra Modi has emphasised that GST 2.0 will lay the foundation for a Viksit Bharat (Developed India).
Here is a detailed table on GST charges on daily essentials:
Impact of GST 2.0 on Food & Essentials
Food is central to every Indian household, and the GST Council’s latest meeting has delivered good news. Here is an overview of the impact of GST reforms on food and essentials:
| Food & Agricultural Products | Old GST | New GST |
| UHT milk | 5% | NIL |
| Pre-packaged & labelled chena or paneer | 5% | NIL |
| Pizza bread | 5% | NIL |
| Khakhra, chapati or roti | 5% | NIL |
| Paratha, parotta & other Indian breads | 18% | NIL |
| Condensed milk | 12% | 5% |
| Butter, ghee, cheese, dairy spreads | 12% | 5% |
| Dried nuts (Brazil, Almonds, Hazelnuts, etc.) | 12% | 5% |
| Dried fruits (Dates, figs, pineapples, guavas, mangoes) | 12% | 5% |
| Dried citrus fruits (Oranges, Mandarins, Lemons, Limes) | 12% | 5% |
| Pasta, instant noodles | 12% | 5% |
| Prepared/preserved vegetables, fruits, nuts | 12% | 5% |
| Fruit/nut juices (unfermented) | 12% | 5% |
| Pre-packaged & labelled namkeens, bhujia, mixture | 12% | 5% |
| Soya milk drinks | 12% | 5% |
| Milk-based beverages | 12% | 5% |
| Malt, whether or not roasted | 18% | 5% |
| Margarine, Linoxyn | 18% | 5% |
| Glycerol, crude; glycerol waters and lyes | 18% | 5% |
| Vegetable waxes, Beeswax, insect waxes | 18% | 5% |
| Cocoa butter, fat, oil, powder | 18% | 5% |
| Chocolates & other food preparations containing cocoa | 18% | 5% |
| Cornflakes, prepared foods from cereal flakes | 18% | 5% |
| Pastry, cakes, biscuits & other bakers’ wares | 18% | 5% |
| Extracts of coffee/tea | 18% | 5% |
| Soups & broths, homogenised composite food preparations | 18% | 5% |
| Ice cream & other edible ice | 18% | 5% |
| Unflavoured/unsweetened waters | 18% | 5% |
| Plant-based milk drinks | 18% | 5% |
| Tractors (most types) | 12% | 5% |
| Agricultural machinery for soil preparation/cultivation | 12% | 5% |
| Harvesting/threshing machinery, balers, mowers | 12% | 5% |
| Composting machines | 12% | 5% |
| Tractor components (tyres, gears, hydraulic pumps, parts) | 18% | 5% |
Impact: From a farmer investing in equipment to a family stocking the kitchen, the latest changes in GST lower costs across the board. Affordable machinery also means fresher produce and reduced wastage.
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Also read: Impact of GST Reforms on Car Prices
Impact of GST 2.0 on Personal Care and Household Items
From shampoos to bicycles, the latest GST update slashes rates on essentials. Here is a detailed list of all the personal care and household essentials that will see a reduction in GST:
| Personal Care & Household Items | Old GST | New GST |
| Hair oil, shampoos | 18% | 5% |
| Toilet soap bars | 18% | 5% |
| Toothbrushes, toothpaste, dental floss | 18% | 5% |
| Talcum powder, face powder | 18% | 5% |
| Shaving cream, shaving lotion, aftershave lotion | 18% | 5% |
| Bicycles & other non-motorised cycles | 12% | 5% |
| Tableware, kitchenware (wood, porcelain, china, clay, terracotta, iron & steel, copper, aluminium) | 12% | 5% |
| Candles, tapers | 12% | 5% |
| Safety matches | 12% | 5% |
| Feeding bottles & nipples | 12% | 5% |
| Handbags & shopping bags (cotton, jute) | 12% | 5% |
| Umbrellas & sun umbrellas | 12% | 5% |
| Sewing needles | 12% | 5% |
| Kerosene burners/stoves, wood-burning stoves | 12% | 5% |
| Sewing machines | 12% | 5% |
| Furniture wholly made of bamboo, cane or rattan | 12% | 5% |
| Hurricane lanterns, kerosene lamps & parts | 12% | 5% |
| Baby napkins/liners, clinical diapers | 12% | 5% |
Impact: These everyday reductions translate into lower monthly expenses, especially for middle-class and rural households.
Also Read: GST Reforms Lead Price Drop in Flipkart & Amazon Sale
Impact of GST 2.0 on Education: More Affordable
Students and parents also benefit from the latest GST 2.0 update, as the education-related stationery will also face a GST reduction starting September 22. These are as follows:
| Education-Related Items | Old GST | New GST |
| Erasers | 5% | NIL |
| Maps, atlases, globes (printed) | 12% | NIL |
| Pencil sharpeners | 12% | NIL |
| Pencils, crayons, pastels, drawing charcoals, tailor’s chalk | 12% | NIL |
| Exercise book, graph book, laboratory notebook | 12% | NIL |
| Mathematical boxes, geometry boxes, colour boxes | 12% | 5% |
Impact: Families with school-going children can breathe easier as the cost of stationery shrinks. This change supports India’s long-term focus on education.
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Electronic Appliances and Services Under GST 2.0
Electronics and lifestyle services are also cheaper, giving breathing room for the tech-savvy. These are as follows:
| Consumer Electronics | Old GST | New GST |
| Air-conditioning machines | 28% | 18% |
| Dishwashing machines (household) | 28% | 18% |
| Television sets (LCD, LED), monitors, projectors, set-top boxes | 28% | 18% |
Impact: Whether it’s upgrading your home or travelling affordably, these latest news reforms expand access for more Indians.
There are some other reductions too that will benefit the consumers greatly, such as:
|
Services | Old GST | New GST |
| Hotel accommodation (value ≤ ₹7,500/unit/day) | 12% with ITC | 5% without ITC |
| Beauty & physical well-being services (gyms, salons, barbers, yoga) | 18% with ITC | 5% without ITC |
Why GST 2.0 Matters to You
Simply put, in the long run, GST 2.0 is not just a tax cut; it is a financial relief strategy. By lowering the GST burden, citizens can save more, businesses can simplify compliance, and India can strengthen its domestic demand.
If you’re recalculating budgets or exploring new opportunities, it is wise to use tools like a GST calculator to make your calculations easier.
Conclusion
With GST 2.0 effective from 22nd September 2025, households, traders, and industries will all feel the difference. This will bring forth a significant reform in the daily lives of everyone.
These reforms, in the Prime Minister’s words, aim to enhance the ease of living for everyone.
As consumers, the question is no longer “What will GST take from us?” but rather, “How much more can we save with GST 2.0?”
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