GST 2.0 Implemented: How Much Will You Save On Food, Cars, ACs And More| What Changes?

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00:00Today, in the country, the next generation of GST revamps has begun.

00:30This simply means that India will now adopt a two-tier tax system.

00:43The new tax system of GST 2.0 will replace the four-tier tax structure of 5%, 12%, 18%,

00:51and 28%.

00:52The decision to revamp the GST structure was announced at the 56th GST Council meeting chaired

00:58by Finance Minister Nirmala Sitaraman.

01:00The core objective of GST 2.0 is to streamline the country's indirect tax system by cutting

01:06down the number of slabs and removing classification disputes.

01:10For consumers, the new structure is designed to bring in more clarity, fairness, and some

01:15protection against inflation.

01:17However, the real question for consumers is whether companies will pass on the benefits

01:22of tax cuts to them or not, as past experiences have shown mixed results.

01:28Earlier, GST had four slabs, 5%, 12%, 18%, and 28%.

01:38This offer led to confusion, especially while deciding which goods should fall under which

01:43category.

01:44Now, under GST 2.0, things have been made simpler with just two main slabs.

01:485% for essential and daily-use items like food grains, medicines, basic daily products, and

01:54educational supplies.

01:56And 18% for most regular goods and services, including manufacturing, transport, and consumer

02:01services.

02:02Apart from this, a 40% tax will be charged on luxury and sin goods such as tobacco, paan

02:08masala, aerated drinks, high-end vehicles, gambling, casinos, online gaming, and race clubs.

02:14The second reason is that today, the next generation of GST reforms has begun.

02:30So, here's a full list of items that will get cheaper.

02:47Bathroom items like hair oil, soaps, shampoos, toothbrushes, and toothpaste will move to the

02:525% tax bracket, making hygiene more affordable.

02:56Grooming products such as talcum powder, face powder, shaving cream, and aftershave lotions

03:00will become cheaper as their tax rate drops from 18% to 5%.

03:06Baby products like diapers and feeding essentials will cost less, giving relief to young families.

03:11Dairy products such as ghee will get cheaper by 40 to 70 rupees per litre, butter by 4 rupees

03:17per 100 gram pack, and paneer by 4 rupees per 200 gram pack.

03:21Packaged foods like namkeen noodles, chocolates, jams, and ketchup in sauces will all move to

03:275% GST, leading to price cuts and luxury chocolate boxes by up to 100 rupees.

03:32Beverages such as fruit juices will be 5 to 10 rupees cheaper, coffee blends will fall by

03:3730 to 95 rupees per pack, and bottled water will drop by 2 rupees.

03:42Aerated drinks, however, will stay in the higher tax category.

03:46In the same category, tax-free items include ultra-high temperature milk, packaged paneer,

03:51and all Indian breads including chapati, roti, and paratha will become completely exempt from GST.

03:5733 life-saving drugs along with select cancer and rare-diseased medicines will become tax-free.

04:03All other medicines will move from 12% to 5%.

04:07Medical equipment such as glucometers, diagnostic kits, surgical instruments, and medical devices

04:13will be more affordable.

04:14Wellness services such as gym, salon, barber, yoga, and spa visits will be taxed at 5% instead

04:20of 18%, lowering costs for customers.

04:24Air conditioners like split ACs will be cheaper by 2,800 to 5,900 rupees and window ACs will fall

04:31by around 3,400 rupees.

04:34Dishwasher prices will drop up by up to 8,000 rupees with entry-level models down by about 4,000 rupees.

04:41Small vehicles up to 350cc will shift to 18% GST making them cheaper.

04:46Entry-level cars such as hatchbacks will be 40,000 to 75,000 rupees cheaper.

04:52Sedans will drop by 57,000 to 80,000 rupees and compact SUVs will cut costs by 68,000 to 85,000 rupees.

05:01Mid-range cars like SUVs will see price drops of 1 to 1.56 lakh rupees.

05:07Sedans 60,000 to 98,000 rupees and crossovers 72,000 to 1.23 lakh rupees.

05:15Luxury vehicles like premium SUVs will fall by 1.8 to 4.5 lakh rupees while ultra-premium models will

05:23see deductions of over 30 lakh rupees.

05:25Two-wheelers like scooters and motorcycles under 350cc will be cheaper by 5,600 to 18,800 rupees.

05:33Commercial vehicles like trucks, buses, and ambulances will also get cheaper helping lower

05:39transport costs. All components of auto parts will attract a uniform 18% GST, simplifying the system.

05:46Cement prices will drop as GST falls to 18%, reducing housing and infrastructure costs.

05:52Farming equipment such as tractors, harvesters, and soil machines will become more affordable.

05:57Inputs for fertilizer production will get cheaper, easing farmers' costs.

06:01Hotel rooms priced below 7,500 rupees per night will be taxed at 5% instead of 12%, making stays more

06:09affordable. Tax-free items under students' essentials include exercise books, pencils,

06:14erasers, crayons, and sharpeners. They all will become GST-free. Other study items such as geometry

06:20boxes, school cartons, and trays will move from 12% to 5%. Apart from this, life and health insurance,

06:26including term plans, ULIPs, endowment, family floater, and senior citizens' policies will become

06:33completely tax-free, giving big savings to policyholders. So, what is your opinion on GST 2.0?

06:39Share your thoughts with us in the comment section below.

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