With effect from September 22, 2025, India’s revised Goods and Services Tax (GST) system introduces a streamlined structure with two primary rates—5% and 18%—and a 40% rate for sin goods. During a period when the festive spirits are high, check out how the revmaped GST will impact Mumbaikars, especially the middle-class.
A range of everyday products will shift from the 12% tax bracket to the lower 5% slab, offering relief to household essentials. Items include:
This reduction could ease the financial burden on middle-class families, as small savings on daily purchases accumulate over time.
Goods previously taxed at 28% may now fall under the 18% slab, reducing costs by up to 8%. Key beneficiaries include:
These cuts are expected to boost demand, potentially driving sales for companies like Maruti Suzuki and Hyundai. However, luxury vehicles will remain in higher tax brackets.
There’s potential for insurance premiums, currently at 18%, to move to a lower slab or even gain exemptions, which could make policies more affordable.
Certain products will face the steep 40% “sin tax” rate, including:
Petroleum products remain outside the GST framework, meaning no relief on fuel prices.
