Cars, ACs, Televisions & more: Full list of items that are likely to get cheaper under new GST reforms

For India’s middle class, where even a slight change in tax rates can heavily impact household finances, Prime Minister Narendra Modi’s recent announcement brings welcome relief. The government is set to simplify the Goods and Services Tax ( GST) structure, trimming the current four-tier system of 5%, 12%, 18%, and 28% into a leaner, two-rate framework of 5% and 18%. A separate “sin tax” category will continue to apply to products like tobacco and luxury goods.

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For consumers, this change could mean real savings. Prices of everyday essentials and big-ticket items alike — textiles and apparel, farm machinery, auto components, healthcare, and insurance products, and even staples across the FMCG and retail sectors — are expected to soften.

This isn’t just a tweak to tax rates; it’s a reset that could revive demand, lift household sentiment, and inject fresh energy into consumption-led growth.

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Finance Minister Nirmala Sitharaman will on Wednesday address the crucial meeting of a group of ministers of states as she will make a case for the sweeping GST reforms.

"The idea is to put forth the Centre's view point behind the GST reform proposal. Although the Centre is not a member of the GoM, Union Finance Minister's presence and her address will give the GoM a better understanding of the idea and thought process behind the Centre's proposal," a source told PTI.

ALSO READ: Big GST cut may rev up demand for small cars, hatchbacks likely to attract 18% tax against 28% now

List of key items likely to get cheaper under new GST regime:

• Small Cars: From 28% to 18%
• Insurance premiums: From 18% to 5% or nil
• Daily-use items (From 5% to nil)
• Air conditioners (From 28% to 18%)
• Televisions (From 28% to 18%)

Items likely to be moved to 5% GST slab, as per ANI

• Tooth powder
• Bhujia
• Namkeen
• Potato chips
• Ketchup
• Jam
• Mayonnaise
• Packaged juices
• Pasta
• Noodles
• Butter
• Condensed milk
• Ghee
• cheese
• Milk-based beverages

A reduced GST is expected to trigger a multiplier effect by lowering logistics costs and easing compliance. Since many of the affected items are price-sensitive, cheaper prices from lower GST rates are likely to boost demand and generate jobs. Crucially, at a time when Trump’s tariffs are unsettling global trade, this move could enhance the competitiveness of India’s exports.