From September 22, 2025, India has officially implemented the biggest change in the Goods and Services Tax (GST) structure since its launch in 2017. The GST Council, in its September 3 meeting, decided to reduce the number of tax slabs from four to just two. Now, most goods and services are taxed at either 5% or 18%, while luxury and sin goods such as tobacco, pan masala, and premium cars attract a 40% tax.
This reform, popularly called GST 2.0, is expected to lower the prices of several household products, electronics, and even automobiles. But the major question many households are asking is: Will LPG cylinders, an essential commodity, get cheaper under the new GST rules?
Currently, domestic LPG cylinders attract 5% GST, while commercial LPG cylinders are taxed at 18%. Despite the new GST structure, there has been no change in these rates.
This means that the price of LPG—both for home and commercial use—will remain the same. Consumers hoping for direct relief in their cooking gas bills will be disappointed, as the GST cuts do not cover this essential fuel.
Experts explain that LPG is considered a sensitive essential commodity. While the government has offered subsidies in the past to manage household budgets, tax rates on LPG have remained largely stable. By keeping the GST rate unchanged, the Council aims to ensure steady revenue from commercial cylinders while maintaining affordability for domestic consumers.
Thus, household budgets will not see an immediate reduction in LPG costs despite the GST overhaul.
While LPG is excluded from the tax cuts, a wide range of other items will become cheaper:
Food items: Products like ghee, butter, cheese, ice cream, pickles, jam, and dry fruits now come with lower GST rates. FMCG companies are expected to reduce their prices accordingly, giving customers direct savings at grocery stores.
Electronics and appliances: Big-ticket items such as televisions, washing machines, refrigerators, air conditioners, and dishwashers are set to become more affordable. Estimates suggest:
TVs may become cheaper by ₹2,500 to ₹85,000 depending on the model
Room ACs could drop by around ₹4,700
Dishwashers may see a reduction of nearly ₹8,000
Automobiles: Small cars are now taxed at 18%, while larger cars attract 28%, offering clarity and in some cases relief for buyers.
Healthcare: GST on medicines and medical devices has been reduced to 5%, potentially lowering treatment costs.
The GST 2.0 reforms are expected to act as a festive stimulus, encouraging consumer spending during Navratri, Diwali, and the wedding season. Households can save more on packaged food, electronics, and vehicles, making upgrades and purchases more attractive.
However, when it comes to LPG cylinders, both domestic and commercial consumers will continue to pay the existing GST rates. This means no immediate relief in cooking gas bills despite broader tax cuts.
No GST cut on LPG: Domestic LPG remains taxed at 5% and commercial at 18%
Everyday items get cheaper: Dairy products, dry fruits, and FMCG essentials see lower GST
Electronics and cars benefit most: Big-ticket items witness price drops of thousands of rupees
Healthcare relief: Medicines and devices now attract only 5% GST
In summary, while GST 2.0 has slashed prices across many categories, LPG cylinders remain outside the relief package. For households, this means cooking gas costs stay unchanged, even as other expenses—from groceries to appliances—become lighter on the wallet.
