With the implementation of GST 2.0 across the country, tax slabs have been reduced. LPG cylinder prices remain stable, but dairy, FMCG products, electronics, and the auto sector have seen some relief.

The new GST system (GST 2.0) came into effect across the country on September 22nd. While there were four tax slabs previously, there are now only two: 5% and 18%. Luxury and sin products have been taxed at 40%. This is considered the biggest reform since the implementation of GST in 2017.

Will LPG cylinder become cheaper?

Many people are wondering whether LPG cylinders will be affected. Currently, domestic LPG cylinders attract a 5% GST, while commercial cylinders attract an 18% GST. Despite the new changes, these rates remain unchanged. This means that LPG cylinder prices will remain the same.

Cheap food and drinks

While there's no relief on LPG, many dairy and FMCG products have become cheaper. These include ghee, cheese, butter, ice cream, jams, pickles, and dried fruits. Companies have announced new prices.

Relief on car, AC, and TV also

The impact of the new GST rates will also be visible on the electronics and auto sectors.

• TV prices may fall by Rs 2,500 to Rs 85,000.
• The room AC will be cheaper by around Rs 4,700.
• There will be relief of up to Rs 8,000 on a dishwasher.
• 18% GST will be levied on small cars and 28% GST on big cars.

Impact on healthcare and education sectors

• GST on medicines and medical equipment has been reduced to 5%.
• Goods and services related to children's education have also become tax-free.

Big relief on food items

Bread and pizza have now been placed in the tax-free category. This means that a pack of bread, which previously cost ₹20, will now cost ₹19. The 12-18% tax on pasta, noodles, and cornflakes has been reduced to just 5%. Biscuits and snacks will also now attract only a 5% GST.

Toilet and personal care products

Everyday essentials like oil, shampoo, and soap will now be taxed at just 5% instead of 18%. Consumers will directly benefit from this. For example, a shampoo pack with a base price of ₹100 previously cost ₹118; now, the same pack will be available for just ₹105.