GST Reform 2025, September 22, 2025: A major shift in India’s tax system officially takes effect today with the rollout of GST 2.0. Marketed by the government as a “GST Bachat Utsav” (Savings Festival), the new rules are expected to bring relief to households by lowering the cost of medicines, food items, household goods, and even cars.
While the reform is being celebrated as a consumer-friendly move, experts warn that buyers should stay alert at billing counters to make sure they actually enjoy the benefits of these tax cuts.
What is GST 2.0 All About?
The Goods and Services Tax, first introduced in 2017, is now undergoing its biggest upgrade. GST 2.0 simplifies tax slabs and lowers rates across key categories, making both daily essentials and high-value goods more affordable.
From today, you will notice revised prices on a wide range of items, from soaps and shampoos to cement and cars. At the same time, the government has also tried to cut down red tape for manufacturers and retailers.
Why You Might See Two Price Tags on One Item
One of the most visible changes for shoppers is the possibility of finding two prices on the same product. Retailers are allowed to add new stickers showing the reduced price, but the old MRP will still remain visible.
Example: If a shampoo bottle earlier cost ₹200, the new GST rate may bring it down to ₹190. But if a shop hasn’t updated its billing system, you could still be charged the old rate.
Earlier, businesses were required to publish revised prices in newspapers. That requirement has now been scrapped. Instead, manufacturers only need to share updated price lists with wholesalers and retailers. This means smaller shops might take more time to reflect the changes.
Shopper’s Quick Checklist
If you want to make sure you don’t overpay under GST 2.0, here are three things you should always do:
- Check the MRP carefully – Look for updated stickers before making a purchase.
- Verify your bill – The printed bill should match the new sticker price.
- Stay cautious in local shops – Independent stores may update later, so be extra alert.
According to the Consumer Affairs Advisory (September 18, 2025), all unsold goods must display the new sticker, but the old price cannot be hidden. Manufacturers are also required to spread updates through dealers, retailers, and online channels like social media.
Products That Just Got Cheaper Under GST 2.0
Here are some of the biggest savings for consumers:
- Medicines: GST cut from 12% to 5%. Plus, 36 critical life-saving drugs are now fully GST-free.
- Medical Devices: Now taxed at 5%.
- Food & Essentials: Prices of ghee, butter, dry fruits, and ice creams will drop.
- Household Appliances: Washing machines, air conditioners, soaps, and shampoos are moved to the 5% tax bracket.
- Cement: Tax reduced from 28% to 18%.
- Automobiles: Small cars taxed at 18%, big cars at 28%.
- Electronics: Items like TV sets are also set to become more affordable.
Also Known:
1. Amul Price Cut 2025: Milk, Ghee, Butter & Ice Cream Now Cheaper After GST Relief
GST Reform 2025: Why This Matters for You
With rising living costs, GST 2.0 provides a much-needed breather. From lowering monthly grocery and medical bills to reducing the price of big-ticket purchases, the reform is expected to boost consumer confidence and spending.
However, awareness is the key. Those who double-check stickers and bills will enjoy the benefits right away, while others may risk paying more until shops fully adapt to the changes.
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