New Delhi: Good news for the general public ahead of the festive season! In its recent meeting, the GST Council made several major decisions that will directly impact your wallet. While some items will become cheaper, others may see a slight price increase. Insurance will get cheaper, certain vehicles and soft drinks will get costlier, and farmers will also benefit. Taxes on products from bread to paneer will see significant changes.

India’s GST structure has undergone major changes. The GST Council, chaired by Finance Minister Nirmala Sitharaman, made several important decisions during a late-night meeting on Wednesday. These changes will directly affect citizens, farmers, customers, and the industry. For a long time, there has been demand to simplify tax slabs and reduce taxes on essential items. These reforms will provide relief to the public just in time for the festival season.

1. When will the new GST rates apply?

The new GST rates will be effective from 22 September 2025. However, certain products like cigarettes, bidis, chewing tobacco, and raw tobacco are excluded, and the old rates will continue to apply to them.

2. What about e-way bills?

Existing e-way bills will remain valid even after the new rates come into effect. This means that goods already in transit do not require new e-way bills.

3. Will soft drinks become more expensive?

Yes, carbonated drinks like Coca-Cola and Pepsi will see their GST increase from 28% to 40%, which will raise their retail prices.

4. How will farmers benefit?

The council has provided relief to both farmers and consumers. GST has been reduced on dairy products, fertilizers, bio-pesticides, and agricultural equipment, which will lower farming costs and also benefit consumers during the festive season.

5. Will insurance become cheaper?

Yes. Life insurance and health insurance premiums will now have 0% GST, making it easier and cheaper for people to purchase insurance.

6. What about vehicles?

• Luxury or large vehicles: GST has increased. Petrol cars above 1200cc and diesel cars above 1500cc will now attract 40% GST.

• Small cars and bikes: These will become cheaper due to lower GST rates.

7. Why was tax changed on bread?

Plain bread was already GST-exempt. However, products like pizza bread, parathas, and rotis previously had different GST rates. Now, all Indian bread is GST-free, benefiting customers.

8. Why has tax increased on fruit juice drinks?

Earlier, these drinks had GST plus compensation cess. The cess has now been removed, and GST has been set at 40% to maintain government revenue.

9. Why different tax on paneer and cheese?

Loose or unlabelled paneer was already GST-free. The new changes apply only to packed and labelled paneer, aiming to promote small-scale paneer producers.

10. Impact on sports event tickets

• For recognized sporting events other than IPL, tickets below ₹500 will remain GST-free.

• Tickets above ₹500 will attract 18% GST.