Essentials & FMCG (Nil or 5%)
- Pre-packaged paneer, UHT milk, rotis, paranthas
- Life-saving medicines (33 existing + 3 new cancer/rare disease drugs)
- Individual life and health insurance policies
5% GST (Earlier 12%/18%)
- Butter, ghee, cheese, condensed milk
- Bhujia, namkeen, potato chips
- Packaged juices, ketchup, jam, mayonnaise
- Pasta, noodles, corn flakes, confectionery
- Shampoos, soaps, toothpaste, toothbrushes
- Bicycles, kitchen utensils, tableware
- Agricultural machinery & bio-pesticides
- Medical devices (thermometers, glucometers, oxygen, spectacles)
Impact: Daily groceries, personal care, and household essentials get significantly cheaper.
Consumer Durables & Automobiles (18%)
- Air conditioners, televisions, refrigerators
- Small cars (≤1200cc petrol/≤1500cc diesel)
- Entry-level bikes (≤350cc)
- Cement, auto parts, buses, trucks, ambulances
- Apparel above ₹2,500
Impact: Big-ticket purchases now fall under the 18% slab, down from 28%, making upgrades more affordable.
Luxury & Demerit Goods (40%)
- Carbonated & caffeinated beverages
- Mid-size and luxury cars (above small car category)
- Tobacco products, gutkha, pan masala, cigarettes (rates maintained under new 40% slab)
Impact: Premium items remain costly, ensuring higher taxation on non-essentials and demerit goods.